My firm will pay for a bar review course. Both Kaplan and Barbri are offering deals if you sign up early. I haven't heard from the firm, but I'm wondering whether I should do that (I pay and firm reimburse me) or if i should have them just bill the firm. The main issue is if they bill the firm, will this be included in my taxable income? If so, I would rather get a discount and be reimbursed.
Thanks to those who have been through this and can weigh in!
When law firm reimburses bar review--is this taxable income? Forum
-
Hutz_and_Goodman
- Posts: 1650
- Joined: Mon Apr 30, 2012 10:42 am
-
splitsplat
- Posts: 607
- Joined: Tue Mar 06, 2012 3:25 am
Re: When law firm reimburses bar review--is this taxable income?
if your firm pays or reimburses you for the bar prep stuff, it's usually considered taxable fringe benefits. whether you pay and reimbursed or the firm direct bills, it is going to show up on your w-2. to the extent the overall charge is less if you pay first, then yeah there will be some marginal tax benefits, but not much
-
Yukos
- Posts: 1774
- Joined: Fri Jul 29, 2011 12:47 pm
Re: When law firm reimburses bar review--is this taxable income?
This is not legal advice, because it's what I vaguely remember form Personal Income Tax. Whether you pay (and are reimbursed) or your employer pays generally won't affect deductibility, but it may affect whether it's an above the line or below the line deduction. I believe bar prep is not deductible but bar fees and CLE are (it has to do with whether you're training to join a profession or if you're paying to remain within your profession. This is why law school is not deductible).
