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

[miclase2016]

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.

[PaulaM · Accepted solution]

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.

[miclase2016]

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?

[PaulaM]

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.

[miclase2016]

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.

[PaulaM]

Yay! You can deduct it 🙂

[miclase2016]

Thanks Paula!

[PaulaM]

You are welcome 🙂