TST - Technicians Service Training: Bulletin Board

Paid to Be Trained: Write Off Your TST Contribution On Your Taxes**

How would you like to get a 30% rebate on the seminars and education tools you already use from Technician Service Training, give or take a couple percentage points depending upon you tax bracket, and have the government pay you 49 cents per mile of your commute to and from our meetings?* What is this, a rhetorical question? Of course you would like to get every penny back on your taxes that you can!

Organizations that solicit contributions and memberships generally fall into one of the following four tax exempt categories: 501(c)(3), 501(c)(4) 501(c)(6), and 501(c)(19). We, at Technicians Service Training are a 501 (c) (3), 509 (a) (2). So how can you write off in your taxes your membership, education, and other fees in light of the fact that TST is an educational charity?

First, you can send donations to TST and they are tax-deductible in the same exact way that a donation to any charity is. As an individual, your donations can total up to 30 percent of your pre-tax income and be fully deducted. Any amount totaling more than that cannot be deducted from your income tax. If you are incorporated, your donations can total up to 10 percent of your pre-tax income and be fully deducted from your income tax. TST relies upon charitable contributions to continue providing low-cost seminars and educative materials.

Second, you can deduct your membership and education expenses in several ways. Details concerning this are covered in the following:

If you are a business owner, you can write off your education and books as a run-of-the-mill business expense. However, such a deduction is limited to an income level formula in the C Corporation (10% income limit), and it would pass to an individual on an S Corp. or a partnership. Therefore, it may be advantageous if you “maxed out” on business expenses to deduct your costs with TST as charitable contributions instead.

How is this possible? Technically, products provided exclusively by TST (membership, seminars, and DVDs) cost 70% more than their “fair market value.” For example, if a seminar costs $65, it is technically a $19.50 seminar. Therefore, you can deduct $45.50 of your seminar cost as a charitable contribution and deduct $19.50 as a business expense, if this is advantageous to you. The same applies for our DVDs and membership costs. Just deduct 70% of the cost as a charitable donation and 30% as a business expense. So, on your Form 1120, go to line 19 to deduct charitable contributions. To deduct your employees’ education expenses, go to line 24 of the same form.

Above is Form 1120 for C Corporations

Above is Form 1120S for S Corporations

Note that only 50% of a cash contribution can be deducted for S Corporations. Be sure to fill out schedule K-1 attached to Form 1120S and then put the correct number on your personal Schedule A on the Form 1040.

Above is Worksheet A on Everyone's Form 1040

The same is true for employees. You can deduct your charitable contributions just like it is discussed on the previous page. However, where would you write off your “business expenses” when you are not a business? Well, you can fill out a Form 2106 with your 1040 if you plan on writing off transportation expenses, or you can enter your education expenses on line 21 in your 1040. Because you are buying educative material and seminars for the sake of job skills improvement, you can deduct from your education expenses.

Furthermore, because you are attending educational seminars, you get about 50 cents per mile you drive to and from our meetings sent back to you on your tax return.* So, you can deduct from your education expenses entirely, or you can, if your tax professional recommends it, write off 70% of the seminar, membership, and DVD costs as charitable contributions and 30% off as work-related education expenses.

Get back as much money the government takes from you as legally possible. Get advice from a licensed tax professional and check out IRS.gov to take a look at the form and applicable publications. Lastly, KEEP GOOD RECORDS! Keep your receipts and certificates for at least three years.

Now that you know this, try to think of everything TST is offering as a never-ending 30% off sale! Take advantage of already existing tax law to educate yourself and your employees.

*You can only write off 50 cents per mile IF you began writing off mileage since the first year you owned the vehicle. If this is not the case, you cannot deduct mileage.

** Always seek the advice of a tax professional before acting upon any advice as given.