How to Deduct Professional Literature From Taxes

There are times when you can deduct the cost of purchasing professional literature from your taxes. You must be able to document and justify the purchase, but it can be done. You don't have to be a small business to qualify. Here's what you do if you wish to deduct the cost of purchasing professional literature from your taxes.

Instructions

Difficulty: Moderate

1. Itemize your tax deductions. In order to benefit from taking tax deductions you must file an itemized return. It may take longer than the 1040EZ form, but it may be well worth the small effort.
2. Document how the professional literature is related to your line of work. Be sure to jot a few lines about why it was necessary to purchase the literature that you did. I may be because you needed the literature to study for a promotion, or you needed additional reading material to resolve a work related problem. Make sure the explanations are work related in order to qualify for the deduction.
3. Maintain receipts. In order to be able to deduct the professional literature expense from your taxes you should have receipts for each purchase. It's best to maintain a separate file for your taxable items.
4. Keep your receipts and documentation organized. It is just as important to organize your receipts and documentation for your professional literature purchases, as it is to save receipts. What good is having a receipt if you cannot locate it when you need it? In the event of an Internal Revenue Service audit, you will need to find your document proof for anything in question. Save yourself time and frustration by organizing your papers.

Tips & Warnings

• Itemizing your deductions increases your risk for being audited by the IRS. Be sure to keep accurate records.