PE Study material tax deductible? 1

[FlashSet]

What is everyone's thoughts on deducting PE study material (books, courses, etc) on your taxes? Seems sketchy to me, but I am not really an audit-risk.

Your comments are greatly appreciated.

Maybe someone from the NSA has already forwarded this post to the IRS and now I am pre-flagged for a tax-year 2013 audit.

 

[SLTA]

If you're really that desperate for the small amount of money it would save, maybe you should look at spending less money overall. Yep, seems sketchy to me.

 

[Latexman]

Sure. If it doesn't qualify, the IRS will tell you.

Good luck,
Latexman

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[KENAT]

You could perhaps try asking on CPA-TIPS.com if you want advice from experts on the topic.

Posting guidelines faq731-376

http://eng-tips.com/market.cfm?

(probably not aimed specifically at you)
What is Engineering anyway: faq1088-1484​

 

[DRWeig]

If the CPA-TIPS.COM folks don't help, here's the info from the horse's mouth:

http://www.irs.gov/publications/p529/ar02.html

Work related education is in there, and is described in great detail here:

http://www.irs.gov/publications/p970/ch12.html#en_US_2012_publink1000255841

My opinion is "probably not."



Best to you,

Goober Dave

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[DRWeig]

AUGHHH! I hit submit too early.

My opinion is "probably not."

Qualified with: My profession is engineering, not accounting, and not IRS auditor.

Best to you,

Goober Dave

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[bridgebuster]

Download IRS Form 2106. If you qualify then look at the limitations on Schedule A.
Take every deduction you can. Why give old whisker pus more than he's entitled to.

Gotta go, I think The FBI is at my door.

 

[msquared48]

Failed Bridges Investigator... What did you destroy now BB?

If your outlay is for the advancement of your professional status in your field of work, and it is not reimbursed by your employer, it is deductible. It is also deductible if you are a consultant.

Mike McCann
MMC Engineering

 

[FlashSet]

Thanks you all for the responses.

 

[IRstuff]

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.
> The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
> The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:
> Is needed to meet the minimum educational requirements of your present trade or business, or
> Is part of a program of study that will qualify you for a new trade or business.

Seems to me that PE study materials do not apply to either of the two disqualifications. PE study would seem to me to meet the "maintains or improves" clause.

TTFN
faq731-376

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[bridgebuster]

"Bar or CPA Review Course

Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. They are part of a program of study that can qualify you for a new profession." - By extension it would seem a PE review course would not qualify. However, the IRS only states bar and CPA course.

"Education Required by Employer or by Law"

Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. This additional education is qualifying work-related education if all three of the following requirements are met.

It is required for you to keep your present salary, status, or job,My employer said I must get a PE or else

The requirement serves a bona fide business purpose of your employer, Being a PE helps my employer win more workand

The education is not part of a program that will qualify you for a new trade or business.PE or not I'm still an engineer

Go for it. Just don't spend that portion of the refund too soon.

Mike - I beat the IRS twice; they're still mad at me. On one occasion, they had to increase my refund.