Checkmark iconCan I Write This Off?

Can you write off continuing education expenses?

TL;DR

Continuing education expenses are generally deductible if they maintain or improve skills required in your current business or profession, but not if they qualify you for a new trade or business.

Detailed Answer

You can deduct continuing education expenses if they are necessary to maintain or improve skills in your current business or profession. For example, a graphic designer taking a course to learn advanced design software can deduct the cost. However, if the education is to qualify you for a new trade or business, such as a graphic designer taking courses to become a software developer, it is not deductible. Deductible expenses can include tuition, books, supplies, lab fees, and certain transportation costs. The education must be related to your current job and not part of a program that will qualify you for a new career.

Where to Put It on the Tax Form

Schedule C, Line 27a for sole proprietors or Form 1120 for corporations. For employees, it would be on Form 2106, but only if you are eligible to itemize deductions.

Real World Example

A freelance graphic designer enrolls in a $500 online course to learn advanced Photoshop techniques. This course directly enhances her current skills, allowing her to offer more sophisticated services to clients. She can deduct the $500 as a business expense on her Schedule C.

Audit Risk & Documentation Tips

The audit risk is moderate. Keep detailed records, including receipts, course descriptions, and a statement of how the education relates to your current business. Maintain logs of any travel expenses related to the education, and ensure that the course does not qualify you for a new trade or business.

IRS Reference

IRS Publication 970, IRS Publication 535, IRC §162

Relevant Industries

FreelancersConsultantsReal Estate AgentsHealthcare ProfessionalsIT Professionals

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 25, 2025

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