Can I deduct work related education expenses? 

Updated September 16, 2026 by Robin Scott-Hutchens, EA

Have you ever heard of the term “lifelong learning”? If not, just ask Google, or your preferred AI assistant, and you will find that lifelong learning describes, and I quote, “the continuous, voluntary, and self-driven pursuit of knowledge.” Now that you know, do you consider yourself to be a lifelong learner? Do you even have a choice in the matter? 

For some professionals, such as lawyers, accountants, architects, doctors, and investment bankers, continuously advancing their education and professional credentials is a way of life. However, you don’t have to be a part of a particular profession to invest time and resources to level up your skills. People do it every day to keep their skills current, either for their jobs or in pursuit of their next work adventure. Naturally, when tax time rolls around, many people ask: Can I deduct those education costs? The simple answer is maybe you can.  It will depend on your individual circumstances. Let's discuss all the possibilities that will allow you to deduct work-related education expenses on your next tax return. 

 

Employee Reimbursement Under a Plan

While there is no deduction here, this is a best-case scenario. If you are an employee, a.k.a. a W-2 earner, you must check whether your employer provides education assistance. Employer education assistance programs allow up to $5,250 per calendar year, indexed for inflation after 2026, to be reimbursed to an employee for education expenses. The reimbursed money should not be included with your wages or salary. If your employer offers education reimbursement, make sure to follow their rules and procedures to get your expenses covered. Once you’ve been reimbursed, that is it. There is nothing to report on your taxes—unless your eligible expenses are more than the maximum tax-free amount your employer can reimburse. In that case, the excess amount may be treated differently, which brings us to unreimbursed employee expenses.

 

Employee Unreimbursed Expenses

What if you are an employee and your employer does not provide reimbursement for your education expenses – or what if your expenses exceed the $5,250 amount? Under current federal tax rules, employees cannot deduct unreimbursed work-related education expenses on their federal return. This section of the tax code has been permanently repealed for most taxpayers. That means if your employer does not pay you for the classes, you usually cannot write them off yourself. However, there is a small caveat here. If you belong to one of the few special groups of individuals, you may be able to claim the expense on your taxes.

The special groups that may qualify are:
 

• Armed Forces reservists
• Qualified performing artists
• Fee-basis state or local government officials
• People with impairment-related work expenses

If you belong to one of these four broad categories, then follow the instructions on Form 2106, Employee Business Expenses, to properly report and claim the deduction. 

If you are not a member of either group and cannot take the deduction on Form 2106, do not give up just yet. You may want to check whether you qualify for an education tax credit, such as the Lifetime Learning Credit.

 

Lifetime Learning Credit 

Currently, there are two education credits available to taxpayers: the American Opportunity Tax Credit and the Lifetime Learning Credit. The American Opportunity Tax Credit, or AOTC, is available to students in their first four years of higher education. If the classes you took count toward completing an undergraduate degree or other recognized post-secondary certificate or credential, this credit may be available to you.

The Lifetime Learning Credit, however, is for lifelong learners. This credit can apply toward undergraduate and graduate studies, professional degree courses, and courses to acquire or improve job skills. This non-refundable credit is an option, but you must qualify for it. You can read more about these two credits and education expenses that qualify in our previous blog post: Is College Tuition Tax deductible? Let’s Take a Look. 

 

What If You Are Self-Employed?

This is where the news gets even better. If you are a self-employed individual, a freelancer, or an independent contractor, you may be able to deduct work-related education costs as a business expense. The important part is that the class must connect to the work you already do, and the expense must be ordinary and necessary.

Examples of costs that may count include:
 

• Tuition fees
• Class registration fees
• Books and supplies
• Lab fees, if any
• Research costs
• Certain travel or transportation costs related to the education

Here is a simple example to illustrate this point: you are a self-employed accountant and take a class on tax software updates or depreciation rules. That class is tied to the work you already do, so it may qualify. But if you sign up for a cupcake decorating class just for fun, that cost would not count as a business education deduction. Tasty? Yes. Deductible? Absolutely not.

Something else for self-employed people to keep in mind; an education expense that trains you for a brand-new profession does not qualify. For example, if, as an accountant, you decide to go back to school to become a nurse, that education is for a new line of work, so it would not be deductible as a business expense. However, it may qualify for the education credits we discussed earlier, so be sure to apply the correct context to the situation before you claim an education deduction on your return. 

 

Words of Wisdom Before You Claim Education Expenses

Taxes can be tricky, but the rules for education expenses are easier to understand when you look at how the education relates to your work. 
 

• If the education helps you improve skills for your current job, first check whether your employer offers tax-free education assistance. 
  • If you pay the costs yourself, you may qualify for the Lifetime Learning Credit if the course is taken at an eligible educational institution and meets the IRS requirements. 
• If the education qualifies you for a new trade or business, it generally is not deductible as a work-related education expense, though an education credit may still be available if the IRS rules are met. 
• If you are self-employed, education that maintains or improves skills needed in your current business may be deductible, but education that prepares you for a new line of work is not. 

When in doubt, save your receipts and ask a tax professional to help you determine whether your education expenses qualify for reimbursement, a tax credit, or a deduction.