The government offers small business owners the chance to deduct a lot of their business expenses on their taxes. Without these deductions, small business owners could be left owing hundreds of thousands of dollars. While many small business owners know about the standard tax deductions like equipment and supplies, they are unfamiliar with the ability to deduct training costs on their taxes.

Employee training can be declared on a small business’ tax return if it meets certain criteria. Here’s a look at some of the ways employee training can be deducted on a small business‘ tax return.

Training Related Expenses

The first type of deduction is for the expenses related to training the employee. Small businesses are able to deduct tuition expenses, book fees, seminars, and other education expenses when it is used to train an employee. A small business can also deduct any travel expenses but only to and from the school.

Qualification for the Training Courses

In order for expenses to be able to be deducted on a small business’ tax return they must meet certain criteria. The biggest qualification is the training course must be intended to improve the quality of employment at the small business. It must also be done with the sole purpose of increasing the business’ profit. Training courses cannot be deducted if they are to train an employee for a new position in the company, but instead must be intended to improve the employee in their current position.

Employee training deductions can be tricky to claim on a small business tax return. If you need any help seek the help of a tax expert, who is trained to declare these types of tax deductions.