Continuing Education Tax Deduction Guide for Self-Employed and Small Business 

If you're a sole proprietor, freelancer, or otherwise self-employed, you can likely deduct continuing education expenses as a business expense if the education maintains or improves skills you need for your current profession. 

The types of expenses you can deduct include: 

• Continuing education training programs
• Courses (online as well)
• Seminars
• License fees
• Training materials
• Supplies
• Transportation.

However, to get the continuing education tax deduction, you must meet specific IRS criteria, keep good records, and accurately report these business expenses on your tax return.

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Requirements for deducting continuing education expenses

The IRS requires that you meet at least one of these criteria to be eligible for an education expense deduction:

• The training is required by law. For instance, you must keep up-to-date on accounting laws if you’re an accountant or complete specific courses as a real estate agent.
• You complete training that will improve or maintain skills you need for your current job. This could be a course that enhances your existing work as a photographer. 
• You complete training to avoid changes to your work status, such as losing your current salary or position. 

Once you qualify based on the rules mentioned, the IRS lists these additional criteria:

• The training can’t simply provide the basic required education for your current role.
• Even if relevant to your job, your training can’t qualify you for a new line of work. 

For instance, if you’re a freelance photographer, you can’t deduct a marketing class even if it could help attract more clients to your existing business. 

Example of deductible vs. non-deductible expenses

Let’s say you’re a self-employed Certified Public Accountant (CPA). You could deduct the continuing education needed to maintain your license and learn current tax and accounting laws. 

However, you couldn’t get a self-employed tax deduction for training you took to qualify for your initial CPA license, or that could lead to a different career.

Which continuing education expenses are deductible?

The IRS lets you deduct a wide range of education-related expenses as a business or self-employed person, including:

• Tuition for formal courses and programs through colleges and universities
• Online and in-person professional development courses
• Professional seminars
• Lab fees and other required course fees
• Relevant books and training supplies
• Subscriptions to industry publications
• Professional certification and license renewal fees
• Typing and research costs for your job-related coursework.

We recommend checking IRS Publication 970 for the full details on qualifying expenses.

Travel-related continuing education expenses

Suppose you travel directly from work to your training or return to work after the training. In that case, you might also be eligible to deduct transportation and travel costs. These costs include public transportation fees and business mileage based on the actual expense method or the standard mileage rate ($0.70 per mile for 2025). 

Related tolls and parking costs also count. You can use Driversnote to track these costs conveniently.

Note that overnight travel-related expenses aren’t deductible. The same applies if you travel for education purposes. For instance, you can't deduct a trip to France for learning French.

Deduct Continuing Education Expenses

The IRS requires that you have records showing the continuing education expenses you deduct against your business or self-employment income. Some examples include:

• Payment records: Receipts, bank or credit card statements, canceled checks, and invoices
• Training records: Transcripts, certificates of completion, and course descriptions
• Travel records: Mileage logs for education-related travel and receipts for various expenses

Using your records, you can deduct the cost of eligible continuing education expenses against your income on your Schedule C (Profit or Loss from Business) form. 

Except for travel expenses, these write-offs typically go into the “other expenses” category on line 27a. You’ll use Part V of your Schedule C to detail each expense and amount.

Also read: How to keep track of business expenses

Continuing education tax deduction for employees

According to IRS rules, most employees can’t deduct continuing education expenses even if their employers don’t reimburse them. However, the following types of employees are eligible:

• Qualified performing artists
• Fee-based local and state government officials
• Armed Forces reservists

To apply, you must meet the same criteria as mentioned above. 

For example, education expenses must be relevant to maintaining or improving the skills required for your current job. You can’t deduct expenses that qualify you for a new job or profession, even if they are in the same field. Additionally, if the education is necessary to meet the minimum qualifications for your current job, it is not deductible.

However, you can generally deduct the same types of eligible education expenses (e.g., tuition, books, and fees). Suppose the training is considered temporary (lasting one year or less). In that case, travel expenses between your home and the training location may also be deductible.

You’ll need records of eligible employee continuing education costs to get the deduction. Writing off these costs requires completing Schedule A to itemize your expenses and Form 2106 (Employee Business Expenses).

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