Can I write off a $10K online course purchase as a tax deduction if it wasn't what I expected?

I made a pretty expensive mistake and I'm trying to figure out if there's any way to salvage it financially. I recently dropped $10K on an online course from this "guru" who promised to teach me skills to grow my freelance business. After getting access, I quickly realized it was nowhere near the quality that was advertised - basically just a bunch of recycled YouTube content packaged together. The only silver lining the mentor offered was that I could "write this off as a business expense" on my taxes. I honestly should have researched the tax implications before spending so much money, but I got caught up in the hype. The course isn't through any accredited university or educational institution. It's just a self-made program this person created and sells online. So now I'm wondering what the actual tax implications are - can I legitimately write off this $10K course purchase on my 2025 taxes? And if so, under what circumstances? I'm trying to make the best of a bad situation and recoup whatever I can from this expensive lesson.

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21 comments

Gemma Andrews

•8M

Tax advisor here! Whether you can write off this course depends entirely on how it relates to your current work or business. If you're self-employed or have a side business, and the course content was genuinely intended to maintain or improve skills needed in your current work, you might be able to deduct it as a business expense on Schedule C. The key is that it must relate to your existing business - not a new career path or hobby. If you're an employee hoping to deduct it, unfortunately, the Tax Cuts and Jobs Act suspended the deduction for unreimbursed employee business expenses through 2025. The credibility of the course provider (accredited vs. non-accredited) matters less than whether the expense was ordinary and necessary for your business. If it wasn't relevant to your business or you don't have a business, you probably can't deduct it.

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Gemma Andrews

•8M

For a business that's just starting, you can still deduct startup costs - up to $5,000 in the first year, with the remainder amortized over 15 years. The IRS allows this even before you earn income, but you need to be actively engaged in starting the business, not just thinking about it. You'll need to show genuine business intent through concrete actions like marketing, creating business plans, or seeking customers. For the second question, you don't necessarily need to wait until you make money, but you do need to have a legitimate profit motive and be actively pursuing business activities. The IRS may scrutinize businesses that report losses year after year, so document everything to show you're genuinely trying to make a profit.

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Mae Bennett

•8M

I had a similar issue last year with an expensive online marketing course that didn't deliver. I was desperately googling for tax help when I found https://taxr.ai - it totally saved me! I uploaded my purchase receipt and business info, and it analyzed everything to determine if/how I could claim the course as a business expense. It showed me exactly where to report it on my Schedule C and explained the "ordinary and necessary" business expense test in plain English. The system also flagged potential audit risks and showed me what documentation I needed to keep in case the IRS ever questioned it. Super helpful since my course wasn't from a traditional education provider either.

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Mae Bennett

•8M

Yes, it actually helped me understand that the value or quality of the course isn't the determining factor - it's whether the expense was ordinary and necessary for your business. Even if the course was disappointing, as long as you purchased it with a legitimate business purpose, it can still qualify as a deduction. The system helped me document my business intention for the purchase. Regarding AI tax determinations, I had the same concern initially! The system doesn't make final decisions - it analyzes your specific situation against tax rules and provides guidance. It examines your business type, the nature of the expense, and relevant tax codes. Then it shows you supporting IRS regulations and court cases for your specific situation. You still make the final call, but with much better information.

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Melina Haruko

•8M

So I was initially skeptical about using an AI for tax advice, but I'm eating my words now. After seeing your comment I decided to try https://taxr.ai for my coaching certification course expense ($7,500). My situation was complicated because I'm transitioning careers while still working my day job. The tool analyzed my specific circumstances and provided clear guidance on how to properly document the business purpose. It actually showed me that I needed to allocate the expense between current business use and future business preparation, with different tax treatments for each portion. This wasn't just generic advice - it was tailored to my exact situation with references to relevant tax codes. It saved me from incorrectly deducting the full amount as a current business expense, which could have raised red flags. Instead, I have a defensible position if I'm ever audited. Worth every penny!

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Dallas Villalobos

•8M

If you're frustrated with the course provider, you might want to try contacting the IRS directly to ask about the deductibility before you file. Don't waste time with the regular IRS phone number though - I spent WEEKS trying to get through. Then I found https://claimyr.com and their demo at https://youtu.be/_kiP6q8DX5c They somehow get you connected to an actual IRS agent, usually within 15 minutes! I was dealing with a similar situation (expensive seminar that wasn't what was advertised) and needed to confirm how to handle it on my return. After waiting on hold with the IRS for hours across multiple days, Claimyr got me speaking with an IRS rep who confirmed exactly how to handle the deduction.

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Dallas Villalobos

•8M

It works by using an automated system that navigates the IRS phone tree and waits on hold for you. When an agent picks up, you get a call connecting you directly to them. It's basically like having someone wait on hold so you don't have to. They don't bypass the queue - they just handle the waiting part. You're right that IRS agents have limitations on tax advice, but they can absolutely clarify how specific expenses should be categorized and what forms to use. In my case, the agent explained the difference between business education expenses vs. education for a new career, which was exactly what I needed to know. They won't plan your taxes for you, but they will explain how to properly report specific items.

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Saanvi Krishnaswami

•8M

I have to publicly eat my words here. After dismissing Claimyr as likely being a scam, I tried it out of desperation when dealing with a missing refund issue. I had already spent 3 entire afternoons trying to reach the IRS with no success. The service actually worked exactly as advertised. Their system handled all the hold time and IRS menu navigation. When an agent came on the line, I got a call connecting me directly. The IRS agent I spoke with was able to not only help with my refund issue but also answered my questions about business education expenses. She explained that for non-accredited courses like the one being discussed, the key factor is whether it maintains or improves skills needed in your current business. She specifically mentioned that lack of accreditation doesn't automatically disqualify the expense - it's all about the business purpose and relationship to your current work. So both regarding the service and the original tax question - I was wrong and I'm happy to admit it!

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Demi Lagos

•8M

One angle I haven't seen mentioned - you might have consumer protection options. I spent $8k on a "mastermind group" that was basically a glorified group chat. Since it wasn't what was promised, I disputed the charge with my credit card company AND reported it to the FTC. If the course genuinely misrepresented what was being offered, that's potentially fraud. Even if you can write it off (which depends on your tax situation as others explained), you might be able to get your money back entirely.

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Demi Lagos

•8M

Most credit cards allow disputes within 60-120 days of purchase, so 4 months might be cutting it close. Call your card company anyway and explain the situation - sometimes they'll make exceptions, especially for large purchases or clear misrepresentation. Even if the credit card dispute window has closed, you can still file complaints with consumer protection agencies. The FTC, your state attorney general's office, and the Better Business Bureau all take reports about misleading business practices. While they might not get your money back directly, enough complaints can trigger investigations that might lead to refunds or settlements down the road.

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Gemma Andrews

•8M

Great question with an important answer: Yes, that would be problematic. If you deduct the expense and later receive a refund, you have to include that refund as income in the year you receive it (called "tax benefit recovery"). If you're actively pursuing a refund now, the better approach is to wait and see if you get the money back before claiming the deduction. If you've already claimed the deduction and then get a refund, you must report it as income on your next tax return.

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Nia Wilson

•2M

I went through something eerily similar last year - dropped $12K on a "digital marketing mastery" course that turned out to be basic info I could have gotten from free YouTube videos. The frustration is real! Here's what I learned from my CPA: The IRS doesn't care if the course was disappointing or low-quality. What matters is your intent when you purchased it and whether it relates to your current business activities. If you bought it genuinely believing it would help your freelance business and you can show that connection, it's likely deductible as a business expense on Schedule C. Keep all your documentation - the original sales page, emails, receipts, anything showing what was promised vs. what was delivered. This helps establish your legitimate business purpose for the purchase. Also document how you intended to apply the course content to your freelance work. One thing that helped me was writing a brief memo to myself explaining exactly why I thought this course would benefit my business and what specific skills I hoped to gain. Having that contemporaneous documentation made me feel more confident about the deduction. The "guru's" suggestion to write it off isn't wrong, but make sure you actually qualify before claiming it. Good luck!

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Freya Collins

•2M

As a fitness instructor, you can likely deduct that course if it was related to improving or maintaining skills needed for your current work. The key questions are: Did the course content relate to fitness instruction, business skills for fitness professionals, or help you serve your clients better? If the course was about fitness techniques, nutrition, business development for trainers, marketing for fitness services, or similar topics that directly relate to your profession, then yes - it would qualify as an ordinary and necessary business expense on your Schedule C. The fact that there's no refund policy doesn't affect the tax deductibility. What matters is that you purchased it with a legitimate business purpose related to your fitness instruction work. Make sure you keep documentation showing what the course was supposed to teach and how it related to your business. If the course was completely unrelated to fitness (like real estate investing or cryptocurrency trading), then it wouldn't be deductible as a business expense for your fitness instruction business.

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