QUESTION DETAIL
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I am currently a Private Banker for a National Financial Institution. I am actively pursuing a CFP certification and paid $3,795 in tuition and fees this year (2012) for NC State's Online CFP program and $961 to KenZahn Inc. for the 2013 review course. None of the expenses have been or will be reimbursed by my employer. My questions after consulting IRS publication 970 are A) is the tuition eligible for the Lifetime Learning Credit? The program is NC State University's, but the coursework itself was developed by Greene Consulting, which isn't an accredited institution, however NC State is. The payment was made to Greene Consulting as per the credit card receipt even though I made the payment to NC State University. B) If not eligible for the Lifetime Learning Tax Credit, can I deduct it as a business expense? Can I deduct the expense for the Zahn review course as a business expense? Having the CFP certification will better enable me to do my job as a Private Banker, however I noticed that review courses for the bar exam and CPA exam are not deductible because they could qualify someone for a different career. Is this true for CFP as well?
ANSWER
The BIDaWIZ Team's Answer:
Unfortunately, the actual program itself is administrated by an organization that is not eligible to participate in a student aid program handled by the Department of Education. Therefore, the IRS would likely rule against the Lifetime Learning Credit. As for itemizing an un-reimbursed work related expense, it's somewhat of a grey area, but in the past any fees associated with obtaining a license such as a CPA would not be eligible for this deduction. The thought process is such that by obtaining a CPA license, you're entering a new career and have the ability and responsibilities that are far greater than an ordinary bookkeeper or accountant. While it's a slightly different situation with a CFP versus a financial advisor, the courts would likely treat it the same as a CPA. We would not recommend deducting these expenses.
