Tax deductions for your fitness studio business

An ICI/PRO member just sent me a request for a copy of her ICI/PRO annual membership for her taxes. If you can't locate your receipt email my assistant and he will resend it to you.

That triggered me to write this post as a reminder to everyone that your ICI/PRO subscription maybe a deductible education expense. I'm not a tax expert so you will need to check with some Tax Professional that understands what is and isn't allowable where you live and teach.

For PRO members in the USA I found this at,,id=213044,00.html

Business Deduction for Work-Related Education

If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses is greater than 2% of your adjusted gross income. An itemized deduction may reduce the amount of your income subject to tax. Note: If you were to incorporate your fitness business you maybe able to deduct all of this amount in the USA - John

If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. This may reduce the amount of your income subject to both income tax and self-employment tax.

Your work-related education expenses may also qualify you for other tax benefits, such as the tuition and fees deduction and the Hope and lifetime learning credits. You may qualify for these other benefits even if you do not meet the requirements listed above.

To claim a business deduction for work-related education, you must:

  • Be working.
  • Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee.
  • File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed.
  • Have expenses for education that meet the requirements discussed under 

Qualifying Work-Related Education

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests:

  • The education is required by your employer or the law to keep your present salary, status or job. The required education must serve a bona fide business purpose of your employer.
  • The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

  • Is needed to meet the minimum educational requirements of your present trade or business or
  • Is part of a program of study that will qualify you for a new trade or business.

That raises another question; would it make sense to find an expert who can help us decide if incorporating your fitness business would help you save money on future taxes? I know for me and Amy, once we formed Deep Breath In, LLC we were able to deduct many more of our expenses as they were no longer subject to the 2% threshold of our adjusted gross income.

Leave me a comment below 🙂


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