Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Jun 6, 2019 12:45:21 PM

I have a private tutoring business (LLC). Where should I enter the expenses that I paid for a Continuing Education course? What Section?

The sections that I have so far are:
- Supplies
- Meals and entertainment
- Legal and professional fees
- Business travel
- Office expenses
- Taxes and licenses
Not sure into which of them would these expenses fit.

0 7 2212
1 Best answer
Employee Tax Expert
Jun 6, 2019 12:45:23 PM

To be deductible for a self-employed business owner (including LLC's), continuing education expenses must be to:

  • "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.

If you are using TurboTax Self-Employed version,  then you can deduct under Other Miscellaneous expenses and enter a description for the expense.

If you are using TuboTaxBusiness desktop software, then deduct in the section All other Expenses along with the description.

7 Replies
Employee Tax Expert
Jun 6, 2019 12:45:23 PM

To be deductible for a self-employed business owner (including LLC's), continuing education expenses must be to:

  • "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.

If you are using TurboTax Self-Employed version,  then you can deduct under Other Miscellaneous expenses and enter a description for the expense.

If you are using TuboTaxBusiness desktop software, then deduct in the section All other Expenses along with the description.

Level 3
Jun 6, 2019 12:45:25 PM

Thanks for your reply. This course that I took was an "Entrepeneur" course, specifically about "How to Write a Business Plan," I was in the process of writing a new business plan for my private tutoring LLC. Does this course qualify as "maintaining or improving my skills" as an Entrepreneur and therefore are these expenses deductible?

Employee Tax Expert
Jun 6, 2019 12:45:26 PM

That's kinda tricky. If you took it after your business was established, I would say you are maintaining skills. If you took it before your business began, I would think not deductible. Here is were you cannot deduct education expenses:

-The education is needed to meet the minimum educational requirements of your present trade or business. For example, you can't deduct the cost of obtaining a license to practice if you don't already hold such a license, or

-The education is part of a program of study that will qualify you for a new trade or business.

Level 3
Jun 6, 2019 12:45:27 PM

I took this course two years after my business was established, so based in what you have said I think these expenses are deductible. It was not a "requirement" but I felt that I needed to have a business plan that I had not had for 2 years and I took the course in order to learn that skill and improve my business.

Employee Tax Expert
Jun 6, 2019 12:45:28 PM

Yay! You can deduct it 🙂

Level 3
Jun 6, 2019 12:45:30 PM

Thanks Paula!

Employee Tax Expert
Jun 6, 2019 12:45:31 PM

You are welcome 🙂