Tax deductions- Medical License

[DRLMB]

I am currently a resident and planning to apply for my full medical license in 2017. I currently hold a restricted training license.  I am trying to determine if I can write off my medical license fee and DEA application fee for my 2017 taxes.  Because I currently hold a resident license and not a full license does that preclude me from writing off the application fee and DEA license fee?

I have found the following:

"Yes, you may deduct your annual medical license fees as Job-Related Expenses under Deductions & Credits.
If you are self-employed, you may report the fees on Schedule C (Business Expenses).

According to the IRS "---Licenses and Regulatory Fees: You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession---".

See: http://www.irs.gov/publications/p529/ar02.html#en_US_2013_publink100026944

However, medical licensing examinations and the cost of obtaining a medical license are not deductible."

[resident_1]

Maybe you can if you moonlight with 1099 income.

 

[jfoxcpacfp]

Costs to obtain original licensing are not deductible as they are considered to be included in the cost of getting your education. Once you are licensed as a physician, future costs are deductible. Even if you do some 1099 work, only a pro-rated amount of your cost would be deductible, probably not enough to matter.

[childay]

You might be able to make an argument for the DEA registration as that isn't a required initial license fee

[jfoxcpacfp]

childay wrote:

You might be able to make an argument for the DEA registration as that isn’t a required initial license fee

Click to expand...

I agree.

[DMFA]

It is only *initial* licensing that is not deductible. [link] Subsequent licensing, including other state licenses, DEA, DPS, and renew fees *should* be deductible.

You can also deduct dues to your professional societies [link] at national and state level, e.g. AMA, ACP, ACCP, SCCM, ATS, etc. However, the entirety may not be deductible for the portion used for lobbying.  The society should declare what this is.

[pistolpete]

I've already been licensed for several years and held a DEA license for several years. Last year I renewed two state licenses. As these are not initial license, then they should be tax deductible, correct? And the DEA fee will be tax deductible when I file my 2017 taxes?

And my understanding is that I have to itemize these expenses, and if the total amounts to less than the standard deduction, then I should just take the standard deduction, correct? In other words, it's not an above the line deduction?

[jfoxcpacfp]

pistolpete wrote:

I’ve already been licensed for several years and held a DEA license for several years. Last year I renewed two state licenses. As these are not initial license, then they should be tax deductible, correct? And the DEA fee will be tax deductible when I file my 2017 taxes?

And my understanding is that I have to itemize these expenses, and if the total amounts to less than the standard deduction, then I should just take the standard deduction, correct? In other words, it’s not an above the line deduction?

Click to expand...

They sound like qualifying job expenses to me (not knowing your full situation).

If you are a W2 employee, then these are employee business expenses, lumped in with other "Job Expenses and Certain Miscellaneous Deductions" on Schedule A, subject to the 2% limitation (can only deduct the amount that exceeds 2% of your AGI) before you determine if you have enough itemized deductions to file schedule A.