Current Events > Any tax experts / accountants? What can I write off as 'educational' or 'work'?

(+) Yeah! (+)

I spend a shit ton on books, fees for exams, study material, and home office supplies.

Can I write that all off? I would estimate its thousands of dollars.
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What's your occupation?

IdiotMachine posted...

What's your occupation?

medicine resident, so I spent $915 last year on board exam fees, probably another couple hundred on study material and books. I would estimate it comes out to about $1500 ish.
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You're only supposed to write off required education expenses. So books the prof asks you to buy are ok, but not supplemental reading.
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DanHarenChamp posted...

medicine resident, so I spent $915 last year on board exam fees, probably another couple hundred on study material and books. I would estimate it comes out to about $1500 ish.

You can deduct unreimbursed expenses for your job that are necessary or helpful as deductible if you itemize your expenses:
https://www.irs.gov/publications/p529

damn taxes are so complicated, i need to sit down and figure all this shit out
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There's like 300 million people in this country, like they're gonna find one guy

real talk though, how does this stuff work. Didn't you already pay sales tax when you bought the books? Are you like basically asking the IRS to 'refund' you for that? Or are you trying to not pay more?
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lilORANG posted...

You're only supposed to write off required education expenses. So books the prof asks you to buy are ok, but not supplemental reading.

You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests.

1. It maintains or improves skills required in your present work.
2. It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer.

Supplemental material falls under the first test, right?

And later it says...

If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs.
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DanHarenChamp posted...

damn taxes are so complicated, i need to sit down and figure all this shit out

Your tax scenario is not as complicated as you think.

Answer this question:
Did you take the standard deduction?

If "Yes", you cannot deduct your exam fees, study materials, books, etc.

If "No", answer this next question:
Is what you want to deduct more than 2% of your adjusted gross income?

If "Yes", you can deduct. If no, you cannot.

Doe posted...

Didn't you already pay sales tax when you bought the books? Are you like basically asking the IRS to 'refund' you for that? Or are you trying to not pay more?

Deducting these items are not to get sales tax back; it's to lower your reported income, so you pay less income tax. Income tax =/= sales tax.

so they subtract the cost of the books from your income basically?
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Doe posted...

so they subtract the cost of the books from your income basically?

That's how deductions work, yes.

If all you had to deduct was your textbooks and exam fees, it might be better to utilize the standard deduction, since that is $6,350 for single (or $12,700 for married). You would typically itemize deductions if your itemization is larger than the standard deduction. Examples of when this would happen is if you own property and you pay property taxes (which can be deducted).

Remember that you cannot deduct twice, as in you cannot utilize the standard deduction and itemized deductions.

IdiotMachine posted...

DanHarenChamp posted...

damn taxes are so complicated, i need to sit down and figure all this shit out

Your tax scenario is not as complicated as you think.

Answer this question:
Did you take the standard deduction?

If "Yes", you cannot deduct your exam fees, study materials, books, etc.

If "No", answer this next question:
Is what you want to deduct more than 2% of your adjusted gross income?

If "Yes", you can deduct. If no, you cannot.

Doe posted...

Didn't you already pay sales tax when you bought the books? Are you like basically asking the IRS to 'refund' you for that? Or are you trying to not pay more?

Deducting these items are not to get sales tax back; it's to lower your reported income, so you pay less income tax. Income tax =/= sales tax.

So basically its pointless ofr me to itemize deductions.

Alright whatever, Ill juts go through turbo tax like the usual way I did last year. Im married but I dont have kids, dont own property, nothing useful.

Ill google around too how residents do taxes, Im certain theres info out there.
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I make around 50k per year. My wife is a nurse who also makes about the same, maybe a lil bit more.

Should we file together or separate? I just use turbo tax. She has been doing it with her parents who have a tax guy and she always gets like 1000+ back, I got about 300 from turbo tax.
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DanHarenChamp posted...

I make around 50k per year. My wife is a nurse who also makes about the same, maybe a lil bit more.

Should we file together or separate? I just use turbo tax. She has been doing it with her parents who have a tax guy and she always gets like 1000+ back, I got about 300 from turbo tax.

Regardless of what software or person you use, you are always liable. If you utilize the same numbers, all CPAs and tax software should give you the same refund. However, there are some tax accountants that fudge the numbers a bit to get you more money, so you return to them.

Your tax scenario is not complex. So you can do it using a software on the cheap.