are CFA exams fees tax deductible?

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Lloyd Christmas

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First off - I live in Canada - so CRA rules apply only.
Second, I know it’s a little early to ask a tax question.
That said…..
Does anybody deduct the CFA exam fees on their income tax?
It looks like you can’t, but then I’m not sure why one can deduct course fees administered by the CSI (ie the canadian securities course)? What is the difference?
 
If it’s not an employer reimbursable expense, yet it is required to maintain employment then it may be deductible. That’s for the US though…
 
There was a lengthy discussion on this earlier in the year, or maybe last year. I think it was US focused, but there might have been some of our friends to the north weighing in. I quick search might get you your answer.
 
Ah yes, the ol’ mighty search function…
Well, it seems like there is a consensus that you can not.
I guess I’ll pick up this battle again come February.
Cheers.
 
Lloyd Christmas Wrote:
——————————————————-
> Ah yes, the ol’ mighty search function…
>
> Well, it seems like there is a consensus that you
> can not.
>
> I guess I’ll pick up this battle again come
> February.
>
> Cheers.
I was part of that consensus, but I do believe several folks did it anyway and I haven’t heard of any of them being audited. They might show up in the next wikileaks though.
 
I did it.
these are continuing education fees for me and are covered by a recent tax item (form 8863 i think) called Hope Credit and Lifetime Learning Credit or something
 
It’s a gray area. Some deduct it others don’t. If your employer doesn’t reimburse you and it is “required” for your occupation I don’t see why you couldn’t.
As others have mentioned there was a lengthy thread on this subject quite some time ago.
 
I have deducted my exam fees. First off it’s not paid by my employer and I am taking them to enhance my earnings. while I am not a tax specialist as long as you can resonably argue that the expense taken is done in order to earn income I believe you can deduct it.
 
I just enrolled in a financial modeling course and I’ll probably write that off too
 
anyways let them challenge it and kick it out as the worse scenario - what do you stand to lose?
 
higgmond Wrote:
——————————————————-
> I was part of that consensus, but I do believe
> several folks did it anyway and I haven’t heard of
> any of them being audited. They might show up in
> the next wikileaks though.
I did it one year and the IRS rejected my tax return until I removed the CFA deduction. True story.
 
he was asking about canada - although in Canada it’s probably the same
 
bromion Wrote:
——————————————————-
> higgmond Wrote:
> ————————————————–
> —–
> > I was part of that consensus, but I do believe
> > several folks did it anyway and I haven’t heard
> of
> > any of them being audited. They might show up
> in
> > the next wikileaks though.
>
> I did it one year and the IRS rejected my tax
> return until I removed the CFA deduction. True
> story.
That sucks. Was there any penalty other than paying what you would have had to pay if you hadn’t taken the deduction?
 
I think they bill you for the interest on the amount that you owe them.
 
bromion Wrote:
——————————————————-
> I did it one year and the IRS rejected my tax
> return until I removed the CFA deduction. True
> story.
—————————————————–
There has got to be more to this story, the IRS isn’t going to look at your return and kick it because you have deductions relating to education reimbursement. Can you please elaborate? Generally, if they kick your return immediately it is due to a calculation error; it would take an audit for ineligibility.
 
atomicrooster Wrote:
——————————————————-
> There has got to be more to this story, the IRS
> isn’t going to look at your return and kick it
> because you have deductions relating to education
> reimbursement. Can you please elaborate?
> Generally, if they kick your return immediately it
> is due to a calculation error; it would take an
> audit for ineligibility.
I don’t know Bromion’s facts and circumstances, but I never deducted the cost based on Chapter 7 of Publication 970. In a nutshell, it says that the expenses have to be associated with an eligible educational institution, which is defined as any school that is eligible to participate in the DOE’s financial aid program. I didn’t feel CFAI met that definition.
 
So basically I could deduct my UoP online tuition but could not deduct my CFAI exam fees?
 
Chuckrox8 Wrote:
——————————————————-
> So basically I could deduct my UoP online tuition
> but could not deduct my CFAI exam fees?
That is my interpretation (assuming UoP is eligible for federal financial aid), but keep in mind that I am not a tax expert.
 
higgmond Wrote:
——————————————————-
> Chuckrox8 Wrote:
> ————————————————–
> —–
> > So basically I could deduct my UoP online
> tuition
> > but could not deduct my CFAI exam fees?
>
>
> That is my interpretation (assuming UoP is
> eligible for federal financial aid), but keep in
> mind that I am not a tax expert.
As a former tax dude, here is where the CFA fits on the 1040.
You need to file a Schedule A -> Job related expenses (2106 I think) and file expense there. This seems to be the most prudent and acceptable way to do it.
I filed under Lifelong Learning Credit years ago per my accountant’s advice (though I disagreed) without any issue. But I would not advise doing it.
 
i know for a fact that you cannot deduct cfa exam fees in canada.
you can deduct CSI course fees because they are necessary for licensing.
the CRA text directly states that only professional courses/designations that are needed to fulfill licensing requirements are deductible. that is the difference between the two.
you can deduct the union dues when you’re a member.
 
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