Is Professional Computer Software Training for Employees Tax-Deductible?

Posted on 11/29/2021 by Jonathan O'Brien

When business owners and employees seek professional software training, they often express interest in determining whether these courses are tax-deductible, but the answer can depend on several different factors, including whether you're a business owner with an educational program in place or an employee looking to improve their skills. The specific training that you intend to obtain, current IRS rules, and the possibility of receiving financial assistance from outside sources can also influence the answer. If you consider all of the factors involved and consult with a tax professional, a clearer picture will begin to emerge on whether you can legitimately claim deductions for training on your tax forms.

 

Is Employee Training Tax-Deductible?

If you're an employer who's interested in reaping tax benefits for employee training, consider offering a program that's designed to pay for your staff's education or reimburse them for related out-of-pocket expenses. Programs like these are often used as business expense deductions. In addition, certain advanced tax rules may allow individuals to avoid counting the payments or reimbursements as gross income. Setting up and administering this type of program can also help you find stellar job applicants, potentially filling your office with the best employees available. Companies often use this strategy to attract high-value candidates.

 

Is Professional Training Tax-Deductible for Employees?

Generally speaking, taking a course that will allow you to meet the minimum qualifications for a job that you already have will not count as a deductible expense without a recent and significant change in job requirements, responsibilities, or duties. When choosing courses to enroll in, workers will have to ensure that the classes are necessary to maintain their position as a professional or that the training supports their current job by meeting legal, regulatory, or employer requirements.

When posing the question, "Are professional certifications tax-deductible?" the answer can depend on your specific situation. The legality of claiming certification training as a deduction can get tricky if an employee receives education that allows them to leave their employer or start a venture using their newfound skills. Since tax rules can be advanced and complex, it can be a good idea to consult with a tax specialist to get a better idea about what is allowable under current IRS rules.

If you're an employee who has been forced to pay for your own educational expenses without reimbursement, you may be able to claim a deduction on your annual tax return. In some instances, this cost can be itemized and counted as a miscellaneous deduction. While the tax break may not be as high as you would like, it might help lower the amount of money that you owe on your taxes. Keep in mind that if you obtain financial assistance from tax-free resources like grants, scholarships, or veterans' programs to pay for your education, you may not be able to claim a full deduction.

At Certstaffix Training, we offer a number of online and on-site training courses that can prepare employees or a business's workforce to perform their jobs to the best of their abilities. These courses are taught by live instructors using hands-on learning to help students acquire both basic and advanced skills related to popular software. We know that costs and potential tax deductions are concerns for business owners, so we invite them to request a free group training quote. We're sure that you'll see the same value in our courses as we do.







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