What is the Displaced Worker Training Credit?
This credit is allowed for amounts you pay for any training or education that improves your chances of getting a new job after you have lost your previous job. Displaced worker training includes apprenticeships, internships, and educational classes.
To claim this credit all of the following must be true:
- You must have lost your job because the place where you worked either permanently closed or moved, or because your employer abolished your job or shift.
- You paid for job training to enhance your ability to get a job.
- While you were receiving displaced worker training you must have been either unemployed or working no more than 20 hours a week.
The credit is 50% of your job training expenses paid during the year after losing your job, up to a maximum credit of $500. Don't include any expenses that were reimbursed.
Expenses that generally qualify include:
- College tuition and feeds
- Vocational training
- Required course or training materials, such as books and software
Expenses that don't qualify generally include those that don't teach or improve skills used in a job, including:
- Computer purchases and upgrades
- Professional organization fees and dues
- Job placement or career planning services (resume workshops, interview critiques, skills assessments, etc.)
- Certification or licensure expenses (tests, fees, etc.)