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Epi
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Tuition Expense Write-Off

Can tuition paid to advance your skills in your contract services be written off/deducted as a business expense? Can they still be deducted if the tuition was paid with student loans?

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1 Reply
ronaldg11
Expert Alumni

Tuition Expense Write-Off

Hi Epi,

Even if you used student loans to pay tuition you may be able to deduct the cost of work-related education expenses paid during the year if you're a self-employed individual and your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) a law requires to keep your present salary, status or job. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your present trade or business.

https://www.irs.gov/taxtopics/tc513

 

If going to school is necessary for your business, you may be able to write the tuition off on your taxes. Employees have to claim business-related education as an itemized tax deduction but if you're self-employed, you deduct tuition and other educational costs off the self-employment income you report on Schedule C. Your deduction not only lowers the income subject to income tax but to self-employment tax -- a 15.3 percent tax as of 2011. You must make sure your education qualifies as a business expense before claiming the write-off

https://smallbusiness.chron.com/deduct-tuition-self-employment-income-17734.html

 

Hope this helps,

 

Ron G

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