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Subject Author Date
licensing supervision and fees Brian Attwood 01-29-2008
Posted by Brian Attwood on January 29, 2008, 2:53 pm
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 My wife is currently a school psychologist and is endeavoring to
become licensed. Becoming licensed will not advance her current career
in the public school system but will allow her to explore other
options outside of the public school setting.

As part of the requirements of becoming licensed she must be
supervised by a licensed psychologist, who in this case will be
charging for her time (>$600 over the year).

Can and how would we deduct these payments on our 2008 tax return?
Would we need to issue a 1099? Even if the answer to the first
question is no?
Are the exam fees deductible?

Thanks.

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Posted by eagent on January 29, 2008, 4:44 pm
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> My wife is currently a school psychologist and is endeavoring to
> become licensed. Becoming licensed will not advance her current career
> in the public school system but will allow her to explore other
> options outside of the public school setting.
>
> As part of the requirements of becoming licensed she must be
> supervised by a licensed psychologist, who in this case will be
> charging for her time (>$600 over the year).
>
> Can and how would we deduct these payments on our 2008 tax return?
> Would we need to issue a 1099? Even if the answer to the first
> question is no?
> Are the exam fees deductible?
>
> Thanks.
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used,   >>
> << nor can it used, for the purpose of avoiding penalties  >>
> << that may be imposed upon the taxpayer.                  >>
> <<                                                         >>
> <<   The Charter and the Guidelines for submitting posts   >>
> <<  to this newsgroup as well as our anti-spamming policy  >>
> <<                  are atwww.asktax.org.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>

We'd need more information, but it is very likely that there is NO
deduction here (sorry).

The rules for deductibility are pretty clear - IF the education or
associated costs QUALIFY you for a NEW occupation then you get no
deduction.

For example, as a tax accountant, if I went to law school to become a
tax attorney - even though I'd still work in the tax field and I'd
still be an owner of the business, I get no deduction because the law
degree qualifies me to work as an attorney.

For your wife, if the licensing will qualify her for NEW work, there
should be no deduction. I'd suggest you start by visiting
http://www.irs.gov/publications/p970/index.html and read through the
pertinient parts. I'd also stronly encourage you to contact a local
tax pro to review your situation.

Gene E. Utterback, EA, RFC, ABA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Stuart Bronstein on January 29, 2008, 5:03 pm
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>> My wife is currently a school psychologist and is endeavoring to
>> become licensed. Becoming licensed will not advance her current
>> career in the public school system but will allow her to explore
>> other options outside of the public school setting.
>>
>> Can and how would we deduct these payments on our 2008 tax
>> return?
>
> We'd need more information, but it is very likely that there is NO
> deduction here (sorry).
>
> The rules for deductibility are pretty clear - IF the education or
> associated costs QUALIFY you for a NEW occupation then you get no
> deduction.

Right. But if it's the same occupation at a higher level in a new
context, I'd think it might qualify. She's already a school
psychologist. She wants to become qualfied to work as a psychologist
with private clients.

> For example, as a tax accountant, if I went to law school to
> become a tax attorney - even though I'd still work in the tax
> field and I'd still be an owner of the business, I get no
> deduction because the law degree qualifies me to work as an
> attorney.

So if you do something that advances you in your career, but
coincidently happens to qualify you for different work then it is not
deductible? I haven't researched this lately, but it seems a little
harsh.

Stu

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by eagent on January 30, 2008, 3:22 pm
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SNIPPED

> > The rules for deductibility are pretty clear - IF the education or
> > associated costs QUALIFY you for a NEW occupation then you get no
> > deduction.
>
> Right.  But if it's the same occupation at a higher level in a new
> context, I'd think it might qualify.  She's already a school
> psychologist.  She wants to become qualfied to work as a psychologist
> with private clients.
>
> > For example, as a tax accountant, if I went to law school to
> > become a tax attorney - even though I'd still work in the tax
> > field and I'd still be an owner of the business, I get no
> > deduction because the law degree qualifies me to work as an
> > attorney.
>
> So if you do something that advances you in your career, but
> coincidently happens to qualify you for different work then it is not
> deductible?  I haven't researched this lately, but it seems a little
> harsh.
>
> Stu
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used,   >>
> << nor can it used, for the purpose of avoiding penalties  >>
> << that may be imposed upon the taxpayer.                  >>
> <<                                                         >>
> <<   The Charter and the Guidelines for submitting posts   >>
> <<  to this newsgroup as well as our anti-spamming policy  >>
> <<                  are atwww.asktax.org.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>- Hide quoted
text -
>
> - Show quoted text -

CORRECT - without question.

Gene E. Utterback, EA, RFC, ABA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on January 30, 2008, 8:37 pm
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>
> >> My wife is currently a school psychologist and is endeavoring to
> >> become licensed. Becoming licensed will not advance her current
> >> career in the public school system but will allow her to explore
> >> other options outside of the public school setting.
> >>
> >> Can and how would we deduct these payments on our 2008 tax
> >> return?
> >
> > We'd need more information, but it is very likely that there is NO
> > deduction here (sorry).
> >
> > The rules for deductibility are pretty clear - IF the education or
> > associated costs QUALIFY you for a NEW occupation then you get no
> > deduction.
>
> Right. But if it's the same occupation at a higher level in a new
> context, I'd think it might qualify. She's already a school
> psychologist. She wants to become qualfied to work as a psychologist
> with private clients.
>
> > For example, as a tax accountant, if I went to law school to
> > become a tax attorney - even though I'd still work in the tax
> > field and I'd still be an owner of the business, I get no
> > deduction because the law degree qualifies me to work as an
> > attorney.
>
> So if you do something that advances you in your career, but
> coincidently happens to qualify you for different work then it is not
> deductible? I haven't researched this lately, but it seems a little
> harsh.

It seems harsh because it's TRUE.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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