Frequently Asked Questions About Paying for Career and Business Coaching
I often get questions about paying for career and business services and ways to help afford the cost of coaching. This article is to help answer frequently asked questions about paying for the cost of coaching and the different ways you might approach having career coaching paid for.
Please note, this article does not replace the need to talk to an accountant, so please consider talking to one if you have further questions.
Is career coaching tax deductible?
In short, the answer no. According to the IRS, job hunting and moving expenses are no longer tax deductible (https://www.irs.gov/pub/irs-pdf/p4128.pdf).
However, if you are starting a business, coaching expenses are tax deductible because the IRS allows tax deductions for supports that provide further education and business training to help your business grow (https://weareindy.com/blog/is-business-coaching-tax-deductible-maximizing-tax-deductions). The key is to keep receipts and document how to coaching has improved you as a business owner, and your business.
Can I bill career coaching to insurance?
No. While we are certified career coaches and licensed counseling professionals, insurance companies do not cover the service of career coaching.
However, many clients have had their companies reimburse them for professional development. We’ve also seen Employee Assistance Programs or Health Savings Accounts reimburse for the cost of coaching.
Please consult your HR Department to inquire about your employee benefits.
How do I position career coaching to be covered by my current company?
Many clients that we work with at Inner Compass Coach are not looking to change careers, but want to identify how to better manage their career and where to grow within their current company. Often, this ends up getting covered under the umbrella of professional development expenses.
Here at Inner Compass Coach, we can help you identify what motivates to your core: the talents, and skills you want to hone, and how to navigate your career within current company.
We often find companies who value career management and retaining employees will reimburse for these services. We have found that companies retain employees for an average of 2 years after completing our program.
What if none of these options listed above work for me?
If you find that if you cannot write of coaching to your business, nor your HSA, EAP, or employer cover the cost of coaching, consider it an investment in yourself.
Remember, the cost of your increased work satisfaction and fulfillment are invaluable. If you go to work more satisfied because of the changes you made after completing career coaching, that is worth every penny.
My clients often report that their workplace satisfaction increases by 20-50%, which is the difference between dreading work and enjoying work daily.
Moreover, we often help clients negotiate their salaries at the top of the payment bracket based on our research, which can often cover the cost of coaching itself.
Take the example of one of our clients who was in grants management role at a foundation, and pivoted into a contracts manager role. Not only did she get a pay increase for the change in jobs, but we also negotiated her pay at the top of the bracket, leveraging her experience and skills to advocate for the increase. The pay increase improved her satisfaction, and it paid for the cost of coaching and more.
Do you have questions that weren’t answered here?
Please schedule a complimentary consultation, and we can answer questions and discuss how coaching can improve your career or help you start a business.