Hope you are all well and enjoying the summer.
Claiming deductions and credits for work related expenses
There is an easy way to claim educational expenses and that is if you have your own Schedule C business. If you take educational courses because it maintains or improves your skills for your business/profession, these are deductible expenses.
What if you work for someone as an employee and they do not pay or reimburse you for maintaining your professional skills? Can you get a tax deduction/credit for this?
Yes, the Lifetime Learning credit may be the answer you are looking for. You can get a tax credit for up to 20% of $10,000 of qualified courses that allow you to maintain your job skills and professional certifications. There is no limit on the number of years you can claim this credit nor any course load requirements (The American Opportunity Credit also offers up to $2,500 in tax credits, but it is only for undergrads (first 4 years), and you have to be at least a ½ time student). There are some phaseouts based on your modified adjusted gross income. $58,000 to $68,000 for single taxpayers and $116,000 to $136,000 for married filing jointly. This credit up to $2,000 can be used to reduce you taxes due.
If your employer pays for your education, then you have the best of both worlds. There is no taxable event from that and of course you have no out of pocket cost. Some businesses have section 127 plans that allows the plan to cover just about anything that is considered education even when the education is not job related. Some businesses do not advertise this plan to their employees, so it is good to ask the question directly to the HR department and if your company doesn’t have this kind of plan, maybe they can be encouraged to adopt it.
Lifestyle Tip
The Basics of body, mind, and spirit can help you refocus your life for greater benefit. The starting point is your body. Good exercise and tasty nutritious foods can help you feel better and happier. Next is mind. Mind effects body and visa/versa. Watching what you consume with your mind is a good starting point. Staying aware of current events around you are good, but too much news can also dampen your spirits. Listening to music that calms, and uplifts is a powerful way to feel better. It is said that the Yoga of Sound (Naad) is the most powerful Yoga of all.
Photo of the Month.
I was very fortunate this last Sunday. A friend of mind had a cancellation in his party and offered me a ticket to the Olympic trials. Saw both finals of the Men’s and Women’s 100m dash! Beautiful stadium!
I am always available for your questions. You can contact me by emailing or phoning:
Email: [email protected]
Business phone: 541-515-6468
Visit my website for more details on how I serve individuals, small and medium size businesses, and non-profits: gurumukhcpa.com
Stay safe and well!
Kind Regards,
Gurumukh
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