Tax Question Independant Contractor W2?

Question

I am working as an independant contractor as a business analyst. I am taking a Six Sigma course which is costing me 3600$ and it is associated with my position although it is not what I do at work. I was wondering if this can be considered a professional expense for a independant contractor for W2.

Thank you in advance.

Don

Answer 1

If you are an independent contractor, then you would be filing a Schedule C on your 1040. Yes, you can deduct the $3600 on the schedule C, list it as Professional Education. But you might also want to see if you get a better benefit by claiming the lifetime learning credit, or tuition and fees deduction.

Answer 2

Sounds like you are talking about a Schudule C form deduction. The rule is it is deductable if it to improve or maintain current skills.
Sounds like a legal deduction to me, because of the position you are contracting services for.
And actually independent contractor complete a W-9 for the contractor and receive a 1099-MISC. The W-2 relates to employees.

Answer 3

I would give you short answer. If you need the long one, just let me know.

If you get a 1099-MISC, you are consider to be an independent contractor. You are subject to Self-employment tax. However, you would be able to deduct the business related expenses dollar for dollar on the schedule C (assuming you're self-employed).

If you have a w-2 and you are not a statutory employee/non-employee, you may not be able to deduct it dollar for dollar on your tax return. You will need to place it under unreimbursed business expenses under schedule A
http://www.irs.gov/pub/irs-pdf/f1040sab.pdf
line 20
or form 2106 and conduit the expenses back to here.
http://www.irs.gov/pub/irs-pdf/f2106.pdf
And for some people they do not have enough expenses to go itemize or there is a phase out on the itemize or the AMT problem.

By the way, I am sure six sigma would qualify for the business expenses

To be deductible, your expenses must be for education that:

Maintains or improves skills required in your present job; or
Serves a business purpose of your employer and is required by your employer, or by law or regulations, to keep your present salary, status, or job.
http://www.irs.gov/taxtopics/tc513.html