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posted Jun 26, 2021 12:00:38 PM

Is the cost of getting a professional license considered a membership fee?

0 2 2090
2 Replies
Level 6
Jun 28, 2021 6:25:15 AM

Thanks for choosing Turbotax. No, the cost of getting a professional license is not considered a membership fee. If you are working towards a certification or professional status in a trade then you may be eligible to deduct the examination fees on your taxes. If you paid at least $100 in examination fees and meet the criteria, you may be able to claim them under the tuition tax credit, which reduces the amount of tax you owe, if any.

You can claim your examination fee as a tuition expense, provided it meets the following conditions:

  • The examination fee is a requirement for obtaining your professional status or to be certified or licensed as a person in the trades.
  • Your examination fees are paid to an educational institution, professional association, government ministry, or other related institution.
  • The certification or license allows you to practice your trade in Canada.

Usually, GST/HST is added to examination fees. The good news is you can claim these taxes as part of the tuition tax credit.

 

Please click here for more information.

Level 6
Jun 28, 2021 8:01:03 PM

Thank you for choosing TurboTax.

As per CRA: The Annual membership dues do not include initiation fees, licenses, special assessments, or charges for anything other than the organization's ordinary operating costs. You cannot claim charges for pension plans as membership dues, even if your receipts show them as dues.

 

For more information please check the CRA link: Annual union, professional, or like dues

 

If you need any further clarifications, we would be glad to assist you by having you contact us by phone or via Facebook or  Twitter