Possible to deduct coding bootcamp expenses if self-employed?

Hi,

I became unemployed in March of 2021 and immediately enrolled in a coding bootcamp that had a job search training/placement component. After completing the program, I was hired as a contractor for a software development company. I have learned that the bootcamp I attended does not have whatever qualification is necessary to deduct it as an educational expense in pursuit of work.

So I'm wondering: since I now work as an independent contractor, and my "business" was entirely dependent on completion of the bootcamp program (i.e., a "startup cost"), can I deduct the cost of the bootcamp as a business expense? If not, is there any way to recover some of these (considerable) expenses in my tax filing?

I appreciate any insight one can offer here.

Thanks,

1892

1 Best answer

Level 15

Mar 17, 2022 2:35:49 PM

From @Marketstar

No, expenses to learn a new trade or job or to qualify for a new careeraren't deductible.

Start up cost include:

legal and accounting fees
licenses, permit, and other fees
the cost of investigating what it would take to create a successful business, including research on potential markets or products
advertising costs, including advertising for your business opening and creating a business website
office rent and utilities paid before the business begins operating
rental of business equipment such as computers and office supplies
costs for employee training before the business opens, and
expenses related to obtaining financing, suppliers, customers, or distributors.

See Startup Expenses Examples

https://www.mileiq.com/blog/business-startup-costs-deduction/

Level 15

Mar 17, 2022 2:35:49 PM

From @Marketstar

No, expenses to learn a new trade or job or to qualify for a new careeraren't deductible.

Start up cost include:

legal and accounting fees
licenses, permit, and other fees
the cost of investigating what it would take to create a successful business, including research on potential markets or products
advertising costs, including advertising for your business opening and creating a business website
office rent and utilities paid before the business begins operating
rental of business equipment such as computers and office supplies
costs for employee training before the business opens, and
expenses related to obtaining financing, suppliers, customers, or distributors.

See Startup Expenses Examples

https://www.mileiq.com/blog/business-startup-costs-deduction/

Level 1

Mar 18, 2022 7:52:06 AM

Thank you!

It's too bad this couldn't be made to work, though, because it seems analogous:

costs for employee training before the business opens, and

Level 15

Mar 18, 2022 8:21:37 AM

Costs for employee training refers to your expenses as an employer to train the employees in your business.

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Possible to deduct coding bootcamp expenses if self-employed?