If you’re self-employed, you may be able to deduct work-related education expenses paid during the year as a business expense on your Schedule C. Regular W-2 employees can no longer deduct work-related education — under current law, the deduction is limited to the self-employed and a few special categories, like Armed Forces reservists and qualified performing artists. To qualify for a deduction, your expenses must be for education that:
- Maintains or improves your job skills or
- Your employer or a law requires to keep your salary, status, or job.
The education must relate to your present work. Expenses that you can deduct include:
- Tuition, books, supplies, lab fees, and similar items
- Certain transportation and travel costs, and
- Other educational expenses, such as the cost of research and typing
Self-employed business owners can deduct costs for their own education, subject to certain limitations.
To be deductible, you must be able to show that the education:
- “Maintains or improves skills required in your present work,” or
- It is required by law or regulations for maintaining a license to practice, status, or job. For example, professionals can deduct costs for continuing education.
Your work-related education expenses is not deductible if it:
- Is needed to meet the minimum educational requirements of your present trade or business, or
- Is part of a program of study that will qualify you for a new trade or business.
You can find more information, and examples of what qualifies, in IRS Topic No. 513, Work-Related Education Expenses.
