Hold on a minute folks! Is she receiving her license for the first time? If so, there is no deduction for becoming qualified for a new line of work or training for a new profession.

Or, is she licensed in another state or country? If so, you may be able to deduct expenses on schedule A as unreimbursed employee business expenses to the extent they exceed 3% of AGI, or deduct on Schedule C if self employed as a dentist already. If she is a dental hygienist qualifying as a dentist, that is not a qualified expense as she is training for a different profession in the eyes of the IRS.

Or, is this continuing education? If so, you may be able to deduct expenses on schedule A as unreimbursed employee business expenses to the extent they exceed 3% of AGI, or deduct on Schedule C the total amount.

Regarding the FAQ, just go to the IRS website and search the topic, find the appropriate IRS publication, and follow the bullet by bullet instructions.

Better yet, go to Turbo Tax online and the software will ask the failsafe questions for this common inquiry and guide you to place the appropriate answers in the blanks so that you comply with the tax code.

Be careful – as an example you mentioned lodging. What do you mean by lodging? Is it the lodging you need when you go out of area to take the boards? If so, that would be a qualified expense if you are already licensed in NV and are getting licensed in CA. However, if you aren’t licensed yet at all, that would not be a qualifying expense as you are completing the requirements for a new profession.

Any other CPA’s out there – please comment. I am not current in the field, but I do know the basics here.