Can I Deduct a Professional License on My Taxes?

by Susan Reynolds

Business owners and those who are self-employed people are able to write off a variety of business expenses on their taxes. Almost anything associated with your particular business could be eligible for a tax write-off, even professional license fees. You can continue to deduct your work-related costs for as long as you stay in your profession.

Licenses

If you are self-employed or a business owner, you are allowed to deduct the cost of your professional license fees from your taxes. This includes the initial license cost, application fees, test fees, continuing education classes, and any other costs associated with keeping your professional license current. Keep all receipts related to your license and continuing education classes for your taxes. You may deduct the cost of your license for as long as you remain in your professional field.

Education

You are allowed to deduct certain classes that are related to your business, as well as seminars, books, CDs, tapes, and conference costs. You can also deduct travel expenses and some of your meals when you go to and from conferences, classes, and work-related meetings. Tax write offs are not allowed for classes that train you for another field or job. Some college classes may be partially tax deductible, as the government has some tax break incentives for returning students.

Taxes and Insurance

Taxes and insurance directly related to your business are deductible. The insurance for your home office may be deductible. Also included are home office repair costs, utilities, and mortgage interest or rental costs. State and local taxes that are specific for your business can be deducted. Careful record keeping for your home office expenses is needed for getting tax deductions.

Office Supplies

Office supplies that you need to perform your business are tax deductible. Save all your receipts that include the cost, date, and item that you purchased for your business. Some office supplies that qualify include writing utensils, paper, printers, office furniture, and software programs. The items must be considered ordinary and necessary to your particular line of business, and you should not use them for personal use.

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