“In order to get her full license, she has had to pay for supervision on a weekly basis. The total cost of supervision for 2011 was between $2000-3000. Is this tax expense tax deductible?”---->She may be able to deduct certain license fees from her income in calculating her federal income tax liability. Whether license fees are deductible depends on the nature of the license, and whether she itemizes deductions by filing Form 1040 Schedule A Miscellaneous Deductions instead of using the IRS-established standardized deduction.So, if she don’t (can’t) itemize her deductions, then she can’t deduct the cost; Any fees from licensing, training and continuing education, as well as any supplies required in the process, are tax deductible. Association dues are also tax deductible. Even the mileage the massage therapist garners while driving from one client to another is also tax deductible. TheIRS issues a list each year of the amount of the deduction and the restrictions. The deduction is a specific amount of cents per mile. There is also a standard mileage deduction that can be used.
“ If so, what where would I file it?”---->As long as sheis self-employed,then, she may deduct fees paid to a state or local government for a professional license, such as a doctor's, cosmetologist's, or physical therapist's license, on Line 23 of Form 1040 Schedule C. If she is employed by another person or business who does not reimburse her for the cost of her required professional license, then she may claim the professional licensing fee as an unreimbursed employment expense on Form 1040 Schedule A, Line 21. The license fees and other Schedule A deductions are deductible to the extent that they exceed 2 percent of her income.