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Please see for reference IRS publication 970 - www.irs.gov/pub/irs-pdf/p970.pdf - page 67 - 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.
Rules for deducting educational expenses - either as an employee or as a self-employed - are same - as set for qualifying work-related education - See page 61
This chapter discusses work-related education expenses that you may be able to deduct as business expenses. To claim such a deduction, you must:
--Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee,
--File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and
--Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education
In case of audit - the risk is very high that these deductions will be disallowed.
Sorry if you expected a different answer.
If cpa/bar review course fees are treated the same for w2 employee or self employed then I guess I can't take the deducation. Seem funny the IRS points out bar and cpa expenses. I wonder if other professional deduct there expenses...
Well you answered my question I WILL NOT be deducting my cpa exam fee/review course for either education expenses for employee or business section. thanks.