Is Online Courses Tax Deductible for Your Business?

Yes, online courses is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and online courses typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Online Courses

Education that maintains or improves skills needed in your PRESENT work is deductible. Education that qualifies you for a NEW trade or business is NOT deductible.

Requirements to Claim This Deduction

• Must maintain or improve skills for current job
• Cannot qualify you for a new career
• Keep course description and receipt

How to Document Online Courses for Tax Purposes

Proper documentation is critical for any business deduction. For online courses, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 970; Reg. § 1.162-5. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.