What qualifies?
- Online courses related to your business (Udemy, Coursera, Skillshare)
- Professional development workshops and seminars
- Industry conferences (including travel and registration)
- Books, ebooks, and audiobooks related to your field
- Coaching and mentoring programs
- Professional certifications and continuing education
- Trade publications and journal subscriptions
The two-part test
Education expenses are deductible if they meet either of these tests:
- Maintains or improves skills required in your current business
- Required by law or regulation to keep your license or professional status (CPE for CPAs, CME for doctors)
Education that qualifies you for a new trade or profession is never deductible as a business expense, even if it's related to your field.
Example
You're a freelance photographer.
Deductible: A $500 advanced lighting workshop, $200 in photography books, $1,500 conference registration + travel = $2,200
Not deductible: An MBA program, even though business skills would help your freelance career. It qualifies you for a new profession.
IRS Reference
See IRS Publication 970 (Tax Benefits for Education), Chapter 12 for business deduction of work-related education. Report on Schedule C as a business expense.
See IRS Publication 970 (Tax Benefits for Education), Chapter 12 for business deduction of work-related education. Report on Schedule C as a business expense.
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