Can I expense graduate courses (masters degree) from my consulting business if they are relevant to continuing education in my field? (2024)

Simple answer: yes.

Although W-2 employees can no longer deduct job expenses, including education, the self employed (Schedule C filers) still can.

The general rule is: Educational expenses to improve your current job skills are deductible. But learning a new job is not. From JK Lasser’s Your Income Tax 2013, pg 580: "For a deduction, the courses must be related to your existing job responsibilities and not lead to qualification for a new business. The tax court has allowed deductions for MBA (for example) expenses where individuals with some managerial or administrative experience took the courses to improve skills needed for their existing jobs." This doesn't come up very often because most people come out better with the Lifetime Learning credit (LLC) or tuition & fees adjustment (“above the line” deduction). But you can do both if you tuition is more than $10,000. The first $10,000 of expenses qualifies you for the LLC and any excess can be claimed asbusiness expense.

‎June 30, 20205:19 AM

Can I expense graduate courses (masters degree) from my consulting business if they are relevant to continuing education in my field? (2024)
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