Can I deduct training costs as tax deductible?
January 4, 2014 7:54 PM   Subscribe

If I paid back an employer for training costs and business expenses related to the training - are these tax deductible?

As part of my termination agreement with a 2013 employer, I had to pay back 50% of the training costs and business expenses associated with the training. My portion came out to be over $3,000 total paid back to my employer. The business expenses (hotel, car, airfare, mileage) are going to be listed as part of my compensation on my W2 as they were reimbursed directly to me while the training was paid for directly by them. Everything was done in 2013, so this doesn't affect last year's taxes.

Can anyone help me make sense of what is tax deductible, how I would list it, and how likely this is going to be in triggering an audit? The only thing I've found related to this online is IRS Publication 535. I would like to avoid going to a professional, but can if highly recommended.
posted by lpcxa0 to Law & Government (2 answers total)
Read this section. It will depend on whether this was an accountable or nonaccountable plan. You will have to look at the 2013 W2 to determine what box is checked and act accordingly.
posted by calwatch at 9:24 PM on January 4, 2014

First off, note that your miscellaneous itemized deductions are subject to a 2% of AGI floor. So, take your AGI and divide it by 50--you can only deduct expenses in excess of that. For example if your AGI last year is $75,000, you won't be able to deduct the first $1500 of expenses. More.

Next, I would wait and see what your W-2 looks like. If those expenses are really included as income (indicating they were not paid as part of an accountable plan), you should be able to deduct them. More.
posted by payoto at 12:53 PM on January 5, 2014

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