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've 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 fees
- Vocational training
- Required course or training materials, such as books and software
Expenses that generally don't qualify are 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.)
You'll need to fill out the Displaced Worker Training Credit worksheet
to claim this credit, and you'll need to submit the worksheet and proof of your training/education costs, payment, and status as a displaced worker either when you file your return or soon afterwards. Don't worry though - just calculate your credit, and we'll show you how to do the rest later on.