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Taking an Itemized Deduction for Job Expenses 
 
by kmhagen July 26, 2005

Subscriptions to Professional Journals

Subscriptions to professional journals and trade magazines are deductible if they are related to your work.

Work-related Education Expenses

Work-related education expenses are deductible, even if they lead to a degree, if they meet the following two tests:

  1. The education must serve to maintain or improve skills required in your present work.
  2. It must be required by your employer or by law to keep your salary, status, or job, and the requirement must serve a bona fide business purpose of your employer.

You cannot deduct education expenses, even if one or both of the preceding tests are met, if the education:

  1. is needed to meet the minimum requirements to qualify you in your work or business, or
  2. will lead to qualifying you in a new trade or business.

If the education qualifies you for a new trade or business, the expenses are not deductible even if you do not go into that trade or business.

Minimum Requirements

The minimum education requirements to qualify in your work or business are determined by laws and regulations, the standards of your trade, profession, or business, and by your employer. If the minimum requirements subsequently change, after you have met the requirements that were in effect when you were hired, and you have education expenses to meet these new requirements, your expenses would be deductible.

Maintaining or Improving Skills

If you get more education than the law or your employer requires, you can deduct the expenses only if they maintain or improve your skills. Keeping up-to-date on changes or the latest innovations in your trade or profession would qualify as deductible education expenses.

Qualifying Expenses

If you qualify based on these tests, deductible education expenses include tuition, fees, books, supplies, and certain transportation costs.

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