If you are a licensed business person and file taxes, can you deduct the cost of educational classes? I am looking into a certificate program at a local college and wondered about the tax information. I had an accountant in MD, but I have yet to find one here. So I thought I would ask you guys.

I know from my Dh's school that we as a family can deduct the interest on the loan (thankfully we are done with that ).

Also, as long we are on taxes...and the time is looming...

What was the most unlikely thing you realized you could deduct.....Maybe we could all learn a deduction we are missing....some accountants are better at finding "hidden" deductions.

Also, if someone posts a deduction...please remember to run my your accountant....to make sure it is legal where you are and in your situation.. Don't want to get anyone in a situation!

Thanks

Julia

I believe you can, my DH can with his computer business so I imagine you can in a bakery business also.

go to www.irs.gov and you can find out i started to take a tax class but had to quite because of health reasons. what i can rember there are guide line for education deduction. look for the pub 17 and that the general pub and it will tell you what pub is for the education.

Thank you for your help. I will look it up, but honestly I was trying to put off dredging through the IRS papers. They must hire someone to be extraordinairly confusing when they write!

Julia

call your local H&R block they should be able to anwser your questions for you. or atlease what pub to look in because it might not fall under the education credit but under something eles

Depending on what you are taking as a course you can. If it is specific to your industry yes you can take it off as a business expense. If not there are still educational expenses that you can deduct from your personal return.

My husband has his own business and I did at one time. I do our taxes every year. Some of the most common things people forget are:
Meal deductions
Travel (mileage)
Small supplies
Home office deductions
Your tax filing fees
Internet access
Office supplies. (most people who stop and pick up a book of stamps do not realize that if they use part of these to mail business literature that amount is deductable).
Everything is business specific.

There is a great site called www.taxact.com where I do ours. You can file your federal return for free and it takes you step by step.

I began with H&R block in 1989 and worked at several tax office on and off up until 1997. I then started doing them from home each year. I have a dozen or so clients that come to me every year. I don't charge anything near what the larger places do so it helps them save money and gives me a little extra each year.

Oh great thanks, i think that these course will directly apply. It is a pastry certificate program. The classes are at through the culinary program at a local technical school.

thanks again folks.

Julia

patticakesnc what you are doing is what i want to do. i started the classed this pass season when they offered it here and got half way threw and my back flared up on me again. hopfuly when i go to the doc tomorrow they will tell me what they are going to try next. just hopfuly not surgry. and plan on taking the class again next yr.

Classes are great. I haven't really took any brush up courses. The laws do change so much each year but with the website I use to file it is so simple. No more looking up amounts or anything. It does all the calculations for you. It is pretty nice just to practice on as well. You don't actually have to file it just go on and do a mock return and see how you do. It will run alerts to let you know if there is anything that you did wrong or missed.

Do these deductions apply if you do business as a sideline? Also, would they apply if you work for someone else (meals, travel, etc)?

If you sell cakes you have a business. Even if you do it on the side and work for another company as your normal job.

You will need to file a Schedule C form (profit and loss from business) and a Schedule SE (self employement tax). These are not as complicated as the forms look. You will simply report your sales on the Schedule C as as well as your deductions (expenses) for operating that business.

As for the meals and travel. If you travel to deliver the cakes or travel to pick up supplies, those miles are deductable. They should be kept on a simple log showing the date the miles driven and where you went and what you went for.

Meals can be a little trickier. They have to be directly related to your business. If you are making a cake and decide to run to McDonalds for a burger. No it is not deductable. If you have to deliver a cake far away and eat out while you are there, yes it is deductable. If you meet with a client and pay for any drinks or food it is deductable. You only get a 50% meal deduction. You will report all of the amount but it will only be figured in as a 50% deduction.
Example: My husband when he is working on a house cannot deduct his lunch but if he goes with some of the builders for the company he subcontracts through to discuss work, then it is deductable.

The only time you can deduct meals and travel that apply to when working for someone else is if they pay you as a subcontractor (ie. you get a 1099 rather than w2 at the end of the year) and they do not reimburse you for mileage and meals.

Hope this helps.