Can I write off the cost of a Tax seminar?

Question

I want to take a seminar to learn how to properly do my taxes. It costs $1,000, and includes books, cds and in-class training. I'm not running a business - yet. Can I write this cost off? Perhaps as a tax expense or something else? I live in California and I'm in the 28% bracket.

Answer 1

Looked it up. Discussed it with co-workers. Concensus (and fact) is, you can deduct the cost of books and materials, but not the cost of instruction. We found this Get an itemized receipt from whoever you're taking the class from.
Where do you deduct such costs? Under "tax preparation" on line 21 of the Schedule A. Which means you can only use the cost if you itemize, and even then it is indeed subject to the 2% of AGI limitation. If you haven't already paid the money, look into taking an H&R Block tax course. You don't have to work for them just because you take the class, in fact, some people actually go on and work for competitors. The highest price I've seen on an H&R Block basic tax course is $299.
By the way, I usually provide a link to the information I give, either the IRS website or H&R Block, but I can't find it specifically online. The Publication 17 that I'm looking at says "... fees include the cost of tax prep software and tax publications and books... may also include electronic filing fees"

Answer 2

Just my opinion, but a $1,000 seminar for a do it yourself tax return seminar is pretty pricey. As a just for instance, I have a flyer for training that would qualify you to take the Special Enrollment Exam to become an Enrolled Agent. The cost for that is $175. You could also contact your local H&R Block office and inquire about their tax classes which are a lot cheaper. (They hire seasonal preparers from those classes but if you are in the 28% bracket now, keep your day job.)

Answer 3

If you plan to start tax preparation business, it's a legitemate expense even if you have no or little income from tax preparation(be careful though with next years income and expenses). If this seminar is for your own tax preparation, you can't deduct it, because nobody actually prepared you tax return. But you can take life time learning credit, which equals 20% of your expense($200 in your case). This credit will lower your tax liability. Just have an adress of the organization and receipt. If you are an accountant, try to see if tuition and fees adjustment for gross income is more beneficial than credit(you can take this adjustment only if it's related to your profession)

Answer 4

2 possible ways.

Will you start a business? This could be classified as start up costs is you start a business sometime the year you incur the expense.

The other would be through schedule A

Answer 5

If you are a CPA, or some other type of tax professional, you can. If you are just doing it to learn how to do your own taxes, no.

If your return is complicated enough to need a high level of training to do your own, you'd be wise to have a CPA do it.

Answer 6

Yes. This is misc. deduction subject to 2% of your income so the tax benefit may be minimal if not non-existant.

Answer 7

No, unless you are in an a job and it is for the improvement of your skills at your job.