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Are educational expenses tax-deductible in 2024?

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Are educational expenses tax-deductible in 2024?

The cost of education isn’t getting any cheaper. But sometimes investing in some form of education might be just the thing you need to boost your career. Maybe it’s a new certification, a workshop or a master's degree in your field. The good news is that the IRS does allow certain educational expenses to be claimed as tax write-offs. Because let's face it, if there's one thing that can make the prospect of shelling out your hard-earned cash a little less painful, it's the promise of a sweet, sweet tax deduction. For self-employed individuals, this deduction has to be for education that is relevant to their line of work and/or is mandated by the law to continue working in your industry. An easy way to find eligible deductions is to use a self-employment income tax calculator.
Key takeaways:
  • Educational expenses are tax-deductible for self-employed individuals
  • The expenses must be for education related to the current field of work or is government-mandated

Table of contents

What qualifies as an education expense?...Read more

Which education expenses are tax-deductible?...Read more

How can I claim education expenses on my taxes?...Read more

What qualifies as an education expense?

The IRS has specific rules about claiming educational expenses on your tax return as a self-employed individual. For one, it has to be related to your current business. So, if you’re a freelance contractor attending a seminar on the latest regulations in your field, you can claim that as a deduction. You can also deduct any required certifications or training you need to complete to continue working on your field. For example, if you're a licensed nurse and need to complete continuing education courses to renew your nursing license, you may be able to deduct the cost of those courses when you file your Form 1040 in April. Any extra courses you take to improve or upgrade your current skill set can also be written off as a tax deduction. But navigating this rule can be challenging. If you’re a freelance graphic designer who takes a course on the newest illustration tool to help your design work, that qualifies as an educational expense tax deduction, and you can write it off. But if you take a digital marketing course to better sell yourself to potential clients, that expense cannot be written off. This is because this course could also allow you to potentially move into another career path. On a related note, the IRS does not allow you to deduct any educational expenses that could help you pivot into a new career, no matter how basic the course is. So, you can’t even write off an “Intro to Coding” class if you want to be a web developer.
Flyfin image with text explaining rules to qualify educational expenses for self-employed individuals, 1099 workers, and freelancers for tax purposes.

Which education expenses are tax-deductible?

In addition to training classes and courses, there are other education-related expenses that you can claim as self-employment deductions. These expenses will lower your taxable income and as a result, your self-employment taxes. This is especially useful if you have to pay quarterly estimated taxes. You can use a quarterly tax calculator to calculate your tax liability to see whether you owe more than $1,000. You will file this with Form 1040-ES. Sometimes, these tax deadlines are forgotten or those payments you were banking on just didn’t come through in time. This could result in some tax penalties, in which case you can use a tax penalty calculator to figure out what you owe.
Image showing education-related tax deductions including school tuition fees, course-related expenses like lab fees, license renewal, research costs, textbooks, travel expenses, podcast and magazine subscriptions, and course-related supplies. No mention of self-employed, 1099, freelancer, or taxes.
If you’re finding it difficult to track your deductions while working and studying at the same time, just link your expenses to FlyFin and let A.I. find every tax write-off you can claim. CPAs who are 1099 tax experts are available 24/7 in the app and can even prepare and file your returns for you so that you never have to worry about tax season again.

How can I claim education expenses on my taxes?

Now you know that continuing education is tax-deductible as long as it is for your current field of work. So, when you’re claiming this tax deduction, you can report it on Schedule C, as it qualifies as a regular business expense. Apart from tax deductions, you can also claim certain education-related tax credits. These tax credits could be useful if your education expenses don't qualify for any other tax break. The Lifetime Learning Credit or the American Opportunity Credit are popular tax credit options to look into.
Image describing education-related tax credits - Lifetime Learning Credit (LLC) and American Opportunity Tax Credit (AOTC) with eligibility criteria and credit limits. No mention of self-employment or taxes.
So if you think investing in your education is going to help your professional development, by all means go for it. Taking education expenses as tax deductions can be confusing to navigate as a self-employed individual, so make sure you consult a tax professional if you need advice on dealing with your unique tax situation.

Are Subscriptions Tax Deductible?

Subscriptions are tax deductible for self-employed individuals. You can write off the business use percentage as a tax deduction on Schedule C.

Depreciation Tax Deduction

The depreciation tax deduction can be claimed for any asset that is used for business. There are three methods to calculate this deduction.

Internet Bill Tax Deduction

For many who work from home, the internet is necessary for doing business. For some people, their internet bill counts as a tax write-off.

Write Off Your Car Payments

There are many tax deductions you can take related to your car, if you use it for work, but unfortunately your car loan payment isn't one of them.

Home Office Deduction

How the home office deduction saves self-employed individuals and freelancers on their taxes.

Home Improvement Deduction

What qualifies as a home improvement tax deduction and how homeowners who are self-employed or freelancers can benefit most.

Travel Expense Deduction

If you travel for work as a freelancer, there are a number of travel expenses you can claim as tax deductions in 2024 – find the details here.

Food and Entertainment Deduction

For 2024, you can deduct 50% of the cost of business meals as tax deductible – but not every meal can be deducted. This is relevant to self-employed people.

Car depreciation tax

Here's how to take advantage of depreciation, one of the biggest tax deductions people who use their car for work can take.

Car tax write off

Many freelancers drive their own vehicle for business and may qualify for certain car and mileage tax deductions.

Moving expenses deduction

Until recently, you could deduct moving expenses on your tax return. Recent changes to the tax rules have impacted whether you can deduct moving expenses.

Simplified home office deduction

If you use space in your home as an office for your business, you can take either the actual home office deduction or the simplified home office deduction.

Rent Tax Deduction

If you're self-employed, there are few ways you can write off your rent, and if you know how to use them, they can be among the most important ways to save money on taxes each year.

Side Hustle Taxes

Self-employed individuals can write off business expenses when filing side hustle taxes. You can avoid paying taxes on side jobs if your net income is under $400 in a year.

Mileage Tax Deduction

Get a car mileage tax deduction using either the standard mileage deduction or actual expenses deduction. You will report this on Schedule C.

Cell Phone Tax Deduction

A cell phone tax deduction is available to self-employed individuals if it is used for their business. They can also write off their internet usage.

Business And Consultant Tax Deduction

Consultant tax write-offs are useful in lowering self-employment taxes. Sole proprietors can use a QBID to lower taxable income, as they are a pass-through business entity.

Is Credit Card Interest Tax Deductible?

Credit card interest is tax-deductible if it is from a business-related purchase. You can write off a portion of the interest even on a personal credit card if it comes from a business expense.

Are Office Expenses Deductible?

The home office tax deduction is used to write off your home office and office-related expenses. Claim it using the standard or simplified method.

Advertising And Marketing Expenses Deduction

Marketing tax deductions related to promoting a business can be claimed by self-employed individuals. Report them on Schedule C.

Business Startup Costs and Deductions

Business startup costs can be amortized over 15 years. You can also deduct up to $5,000 in the first year if total costs are below $50,000.

Vehicle Write Off For Business

Vehicles used for business can be a tax write-off in 2024. You can claim this deduction even if you lease your vehicle under the actual expenses method.

Are Subscriptions Tax Deductible?

Subscriptions are tax deductible for self-employed individuals. You can write off the business use percentage as a tax deduction on Schedule C.

Depreciation Tax Deduction

The depreciation tax deduction can be claimed for any asset that is used for business. There are three methods to calculate this deduction.

Internet Bill Tax Deduction

For many who work from home, the internet is necessary for doing business. For some people, their internet bill counts as a tax write-off.

Write Off Your Car Payments

There are many tax deductions you can take related to your car, if you use it for work, but unfortunately your car loan payment isn't one of them.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. It offers a host of cutting-edge tax tools that help you quickly find deductions. You can also use tools like a home office deduction calculator. FlyFin uses an A.I. to track all your business expenses automatically and find every possible tax deduction. Once you have all your possible deductions in one place, our CPA team files a guaranteed 100% accurate tax return for you. It saves you a couple of thousand dollars and a ton of time on your taxes. Download the app and have your taxes filed in minutes, saving time and more money on your taxes than last year, guaranteed.
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