Checkmark iconCan I Write This Off?

Is continuing education expenses a business expense?

TL;DR

Continuing education expenses can be deductible as a business expense if they maintain or improve skills required in your current business or trade.

Detailed Answer

Continuing education expenses are deductible if they are necessary to maintain or improve skills required in your current trade or business, or if they are required by law or regulations for maintaining your professional status. However, they are not deductible if they are needed to meet the minimum educational requirements of your present trade or business, or if they qualify you for a new trade or business. For example, a lawyer attending a seminar to stay updated on new laws can deduct the expense, but a teacher taking courses to become a lawyer cannot.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 27a for sole proprietors; Schedule E for rental property owners; or as an adjustment to income on Form 1040 if self-employed.

Real World Example

A self-employed graphic designer takes an online course to learn advanced design software that is increasingly used in the industry. The cost of the course is deductible as it directly improves skills necessary for their current business.

Audit Risk & Documentation Tips

Keep detailed records of the course content, how it relates to your business, and proof of payment. Maintain any certificates of completion or course syllabi to demonstrate the relevance to your current trade or business. This documentation will be crucial in case of an audit.

IRS Reference

IRS Publication 970, Tax Benefits for Education; IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsHealthcare ProfessionalsLegal Professionals

Popular Related Pages

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 15, 2025

Back to Search