Are Online Courses Tax Deductible? Yes — 100% Deduction Guide for Self-Employed
100%
Deductible
Line 27a
Schedule C
Other expenses
Category
$15–$200+
Typical cost
Online courses are 100% tax deductible if they maintain or improve skills directly related to your current self-employed business or LLC. Courses that teach you new skills for your existing trade—from digital marketing to accounting software—qualify as legitimate business education expenses. However, courses that prepare you for an entirely different career do not qualify.
Who qualifies?
Self-employed individuals, sole proprietors, and single-member LLC owners filing Schedule C can deduct online courses. You must be able to show the course directly relates to skills, knowledge, or tools you already use (or need to use) in your current business—not a career pivot.
How to claim it
- 1 Enroll in and complete an online course from platforms like Udemy, Coursera, LinkedIn Learning, or industry-specific providers that improves a skill required in your current business.
- 2 Keep your receipt or proof of purchase showing the course name, date, and cost.
- 3 Record the total course expense on Schedule C, Line 27a (Other Expenses), and add 'Online education' or 'Professional development courses' as a line description.
- 4 If you claim multiple courses, you can total them on Line 27a—no need to list each individually, but keep receipts for IRS verification.
Pro tip
Document the business connection: note in your records why each course relates to your work (e.g., 'Udemy SEO course—required for freelance marketing clients' or 'Excel advanced formulas—used for bookkeeping tasks'). This proof is crucial if audited, since the IRS's main test is whether the course maintains or improves skills for your *current* business, not a future one.
Source: IRS Publication 535: Business Expenses · Updated for the 2025 tax year
Common questions
Can I deduct courses that help me start a new career or business?
No. The IRS requires that deductible education expenses maintain or improve skills in your current business — not qualify you for a new one. A freelance developer taking an advanced React course can deduct it. The same developer taking nursing school courses cannot, even if they plan to open a healthcare business. The line is whether the education relates to your existing trade.
Judy automatically tracks Online Courses — Udemy, Coursera, etc.
Connect your business bank account and Judy categorizes Online Courses — Udemy, Coursera, etc. charges to Other expenses (Line 27a) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
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