How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask wm030303 Your Own Question

wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience:  I am both a CPA and EA with over 30 years of experience in solving tax related issues.
62711457
Type Your Tax Question Here...
wm030303 is online now
A new question is answered every 9 seconds

Re education expense CPA review course deduction on 1040 Hello

Customer Question

Re: education expense CPA review course deduction on 1040

Hello: I spent A LOT of money on a CPA review course. Actually, I bought two courses. Becker was $2,700 and I bought some supplemental DVD's and books from another company so my total investment was maybe $3,500 in review material.

Plus I spent about $1,500 in testing fees since I didn't pass on my 1st atttempt.

I've passed the test at this point but I'm wondering if there is anyway to deduct the money. From my research the IRS appears to say no since they claim the CPA opens up a "new" line of work. But I was an accountant before and since accountant for large company so could I be an exception? The IRS mentioned review courses but didn't mention testing fees. So if review course NOT deductible could testing fees be deductible?
Submitted: 3 years ago.
Category: Tax
Expert:  wm030303 replied 3 years ago.

wm030303 :

Hello and welcome to Just Answer my name is Bill.If you were employed as an Accountant

wm030303 :

If you were employed as an accountant and these costs are incurred to improve your skills in your current job then they are deductible as employee business expenses.

wm030303 :

Review course and testing fees are all miscellaneous employee business expenses subject to the 2% AGI limitation.

wm030303 :

Actually I'm sorry review courses for the bar exam and CPA exam do not qualify for education expenses because they are expenses incurred that could qualify you for a new profession. See IRS Publicatio 970 chapter 12.

wm030303 :

I will understand if you ask for 2nd opinion and don't accept my answer.

Customer :

so even though I'm still doing basically same work pre/post CPA license I still can't deduct education CPA expenses? That includes both review course fees and testing fees? Total cost for me was appx $5,000.

wm030303 :

It would appear as if these costs are not deductible because you are now able to qualify for a new profession.

wm030303 :

Refer to publication 970 chapter 12, this is where the IRS says that these fees are not deductible.

wm030303 :

If you are working for a CPA firm and the employer requires you to become a CPA to maintain your job then these fees would be deductible.

wm030303 :

Hello again, I found the most solid answer in IRS Reg 1.162-5 which states that these expenses are not deductible no matter whether the employer requires you to become a CPA or whether you want to qualify for a new profession. I hope this has helped.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
wm030303
wm030303
Tax Professional
112 Satisfied Customers
I am both a CPA and EA with over 30 years of experience in solving tax related issues.