nurse state board examination deduction

[Thad]

Can a client take a deduction for a state board examination for certification? How many times can a deduction be taken due to failure?

[BOB W]

No deduction for getting qualified for a new job regardless of how many times taken/costs.

[Thad]

Nurse Deduction

I forgot to add that the person is already a nurse...such as an LPN, taking the state board exam to become a RN. Is the state board exam deductible?

[Nashville]

Employee versus FreeLance

Thad is the nurse an employee or does she work for herself on a self-employed engagement business? Big difference.

Bob's comment was in the context of educational expense (largely nondeductible). It is different if this is a necessary requirement imposed by her employer to simply obtain or maintain certification outside the scope of going to school or training.

If an employee, I would lean toward taking the deduction under these circumstances, but subject to the 2%.

If self-employed, I would lean toward taking full deduction.

[New York Enrolled Agent]

I forgot to add that the person is already a nurse...such as an LPN, taking the state board exam to become a RN. Is the state board exam deductible?

No - the Tax Court has ruled that going from an LPN to an RN qualifies as a new profession and thus is a non-deductible expense. See Robinson 78 TC 550 for a full discussion.

[BOB W]

Thad is the nurse an employee or does she work for herself on a self-employed engagement business? Big difference.

Bob's comment was in the context of educational expense (largely nondeductible). It is different if this is a necessary requirement imposed by her employer to simply obtain or maintain certification outside the scope of going to school or training.

If an employee, I would lean toward taking the deduction under these circumstances, but subject to the 2%.

If self-employed, I would lean toward taking full deduction.

It would not matter if an employee or self employed. If the education qualifies as a new profession nothing is deductible. What you are thinking about is continuing education in order to maintain or improve your job knowledge, whether required by your employer or not.