Can I deduct an MBA as a business expense?

It depends on your current business. An MBA is difficult to deduct if you're in your first professional role or starting a business — the IRS tends to treat it as education that qualifies you for a new career. But if you're an established business owner with years of experience and the MBA is specifically to improve management and business skills you already use, the argument is stronger. Many CPAs take the position that a working business owner pursuing an executive MBA can deduct it — but it's a gray area and has been challenged. Document specifically how each course applies to your current business.

What about online courses and self-study programs?

Fully deductible if they maintain or improve skills in your current trade. Online courses on platforms like Coursera, LinkedIn Learning, or industry-specific sites — in topics directly related to your business — are ordinary and necessary business expenses. A marketing consultant taking a course on SEO or ad platform management: deductible. The same consultant taking a course on watercolor painting: not deductible.

Can I deduct books and publications?

Yes — books, magazines, journals, and subscriptions that are specific to your trade or profession are deductible. A CPA subscribing to tax journals and books: deductible. A software engineer subscribing to technical publications: deductible. General-interest business books like management best-sellers are in a gray area — technically they need to be required for your specific work, not just generally interesting.

I'm a consultant. Can I deduct a certification course that adds a credential to my services?

Generally yes — a certification that enhances your existing consulting practice (PMP certification for a project management consultant, Salesforce certification for a CRM consultant) is maintenance or improvement of existing skills. The credential makes you better and more marketable in your current trade. This is different from a certification that would qualify you to enter an entirely new profession.

Can I deduct a professional license renewal fee?

Yes — license renewal fees to maintain the right to practice a trade you're already in are deductible. A CPA renewing their CPA license, a real estate agent renewing their license, a contractor renewing their contractor license — all deductible. Initial license fees to enter a new profession are not deductible under the education rules (they're startup costs under Section 195, not ongoing business expenses).

Tax deductions

Education and Professional Development Deductions for Self-Employed Owners

Self-employed business owners can deduct education and training expenses that maintain or improve skills in their current trade — but not education that qualifies them for a new career. The line matters, and the IRS enforces it.

Written by Matt Reese, CPA · 5 min read · Published April 2026·Share on LinkedIn

Key Takeaways

Education that maintains or improves skills required in your current business is deductible under Section 162 as an ordinary and necessary business expense.
Education that qualifies you for a new trade or profession is not deductible — even if it ultimately relates to an existing business. An accountant getting a law degree can't deduct it; a lawyer getting an LLM in tax law probably can.
Deductible education includes: continuing education (CPA CPE, medical CME, legal CLE), advanced courses in your specific field, industry conferences, seminars, workshops, and books and subscriptions related to your trade.
If the education requires travel, the travel costs follow the same business travel rules — deductible if primarily for the educational program, personal tourism on the side is not deductible.

The rule: current trade vs new career

Section 162 allows a business owner to deduct education expenses that are ordinary and necessary in the course of their trade or business. Treasury Regulation 1.162-5 provides the framework for educational expenses specifically:

Deductible: Education that maintains or improves skills required in your existing employment or trade
Deductible: Education required by law or your employer as a condition of keeping your current job or compensation level
Not deductible: Education that is needed to meet minimum requirements for a trade or business you’re entering
Not deductible: Education that qualifies you for a new trade or profession, even if it’s related to your current work

The test isn’t whether the education relates to your business — it’s whether it maintains skills you already use, or creates skills for a new career you’re entering.

What qualifies: examples across professions

Profession	Deductible	Not deductible
CPA / accountant	CPE courses, tax law updates, accounting software training, CPA license renewal	Law school tuition (qualifies for new profession)
Physician	CME credits, specialty certification renewal, medical conference attendance, new procedure training	Medical school (minimum qualification); unrelated specialty from scratch
Attorney	CLE credits, advanced tax LLM if already a tax attorney, bar membership dues	Initial bar prep courses; LLM to enter a new practice area from scratch
Marketing consultant	Courses on digital marketing platforms, SEO, copywriting, CRM tools, marketing certifications	MBA to transition to general management role
Real estate agent	License renewal, real estate law updates, investment property analysis courses	Mortgage broker licensing if not already a broker
Software developer (freelance)	New programming language courses, cloud platform certifications, security training	Business school degree to pivot to product management
Personal trainer	CPT renewal, nutrition certification to enhance training services, new training methodology	Physical therapy school (new profession)

What’s deductible beyond tuition

When education qualifies as a business deduction, related costs are also deductible:

Tuition and course fees
Books and materials required for the course
Lab fees and similar costs
Transportation to classes (if you have a fixed business location, commuting to a course near your office may not qualify — but travel to classes at a different location generally does)
Travel expenses if the educational program requires overnight travel — flights, hotel, and 50% of meals under normal business travel rules
Technology purchased specifically for the course (laptop, software) — though this may be depreciable equipment rather than a current expense

Annual education deductions — established CPA firm owner

CPE courses (80 hours required for license renewal)$1,200

Tax law books and research subscriptions$800

IRS annual nationwide tax forum registration$400

Travel to forum (flight + hotel + 50% meals)$1,100

Online continuing education platform subscription$350

State CPA society membership + annual conference$650

Total deductible education expenses$4,500

Tax savings at 32% marginal rate≈ $1,440

Many professionals have $3,000–$8,000 in legitimate annual education and professional development expenses that are fully deductible. The key is documenting the business connection — keeping receipts and a note on how each expense relates to your current practice.

Conferences with significant personal tourism components are a red flag

The IRS looks critically at educational conferences in resort destinations where the personal tourism component is obviously the real draw. A two-day CPA conference in Las Vegas followed by five days at the pool: the conference registration may be deductible, but the hotel and meals for the personal days are not, and the full trip is more likely to be scrutinized. The standard business travel rules apply — document business days vs. personal days, deduct accordingly.

Where the deduction goes on your return

For sole proprietors, education and professional development costs are deducted on Schedule C as “Education” or under the relevant expense category.

For S-corp owners, the corporation can pay for and deduct education directly — or reimburse the owner under an Accountable Plan. If the owner pays personally and isn’t reimbursed, the cost is a miscellaneous itemized deduction — which was eliminated for employees under TCJA 2017. This is one more reason S-corp owners should have an Accountable Plan: education reimbursed through the plan is deductible by the corporation and tax-free to the owner.

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Frequently asked

Questions owners actually ask

Can I deduct an MBA as a business expense?: It depends on your current business. An MBA is difficult to deduct if you're in your first professional role or starting a business — the IRS tends to treat it as education that qualifies you for a new career. But if you're an established business owner with years of experience and the MBA is specifically to improve management and business skills you already use, the argument is stronger. Many CPAs take the position that a working business owner pursuing an executive MBA can deduct it — but it's a gray area and has been challenged. Document specifically how each course applies to your current business.
What about online courses and self-study programs?: Fully deductible if they maintain or improve skills in your current trade. Online courses on platforms like Coursera, LinkedIn Learning, or industry-specific sites — in topics directly related to your business — are ordinary and necessary business expenses. A marketing consultant taking a course on SEO or ad platform management: deductible. The same consultant taking a course on watercolor painting: not deductible.
Can I deduct books and publications?: Yes — books, magazines, journals, and subscriptions that are specific to your trade or profession are deductible. A CPA subscribing to tax journals and books: deductible. A software engineer subscribing to technical publications: deductible. General-interest business books like management best-sellers are in a gray area — technically they need to be required for your specific work, not just generally interesting.
I'm a consultant. Can I deduct a certification course that adds a credential to my services?: Generally yes — a certification that enhances your existing consulting practice (PMP certification for a project management consultant, Salesforce certification for a CRM consultant) is maintenance or improvement of existing skills. The credential makes you better and more marketable in your current trade. This is different from a certification that would qualify you to enter an entirely new profession.
Can I deduct a professional license renewal fee?: Yes — license renewal fees to maintain the right to practice a trade you're already in are deductible. A CPA renewing their CPA license, a real estate agent renewing their license, a contractor renewing their contractor license — all deductible. Initial license fees to enter a new profession are not deductible under the education rules (they're startup costs under Section 195, not ongoing business expenses).

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Educational content only.This article is for informational purposes and does not constitute tax, legal, or investment advice. Every owner’s facts are different; consult a qualified CPA and advisor before acting. Tax and accounting services are provided through Matt Reese, CPA; investment advisory services are provided through Measured Risk Portfolios, a registered investment adviser. Matt Reese, CPA and Measured Risk Portfolios are separate entities; clients are not required to engage both.