Can my college tuition be tax-deductible as a self-employed freelancer?

Your question is actually a good one! For self-employed individuals (which you are if you're getting a 1099), education expenses can sometimes be deductible as a business expense - but there are specific rules. Education expenses can be deductible on Schedule C if they maintain or improve skills needed for your current work. Since your engineering studies directly relate to your technical consulting, you might qualify. However, education that qualifies you for a new trade or profession isn't deductible as a business expense. There are also education tax benefits like the American Opportunity Credit (up to $2,500) or the Lifetime Learning Credit (up to $2,000) that might be better options depending on your situation. These would go on your personal tax return rather than your business expenses. One thing to consider: if your parents claim you as a dependent, they might be the ones eligible for these education credits instead of you.

I was in a similar situation last year and discovered taxr.ai (https://taxr.ai) which was super helpful for sorting out my education expenses. I'm also self-employed and taking classes, and I was confused about what I could claim and where. Their AI analyzed my 1099s and school transcripts, then explained exactly which expenses qualified as business deductions vs. which ones were better as education credits. It even showed me how to document the connection between my coursework and business to satisfy IRS requirements if I ever got audited. Seriously made tax season way less stressful.

Just wanted to update - I tried taxr.ai after seeing it mentioned here and it was actually super helpful! I uploaded my tuition statement and 1099s, and it showed me that in my situation, taking the Lifetime Learning Credit was better than the business deduction by about $750. The system also provided documentation templates I can keep with my tax records that show the connection between my studies and my work. Apparently that's important if you get audited. Really glad I checked this out before filing - definitely recommend if you're in the same boat with education expenses and self-employment.

If you're trying to get clarification directly from the IRS about your specific situation (which I'd recommend), good luck getting through to them. I spent WEEKS trying to get someone on the phone about a similar education expense question last tax season. Finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Honestly was shocked it worked because I'd been trying for so long on my own. The agent was able to confirm exactly how my education expenses should be handled as a self-employed person and gave me specific guidance for my situation. Saved me from potentially making a mistake that could have triggered an audit.

Ok I need to apologize and eat my words. After I posted that skeptical comment, I decided to try Claimyr anyway because I was so frustrated trying to reach the IRS about my education credits. It actually worked exactly as described. Got a call back in about 15 minutes saying they were about to connect me with an agent. Spoke with someone who helped clarify how my online certification courses could qualify for tax benefits as a self-employed person. Never been so happy to be wrong! Saved me hours of hold music and frustration. If you need specific answers from the IRS about your education expenses, it's definitely worth it.

Don't overlook state tax benefits too! Some states have additional deductions or credits for tuition that go beyond federal benefits. I'm in New York and was able to claim an additional tuition credit on my state return last year.

Just want to add something no one mentioned yet - if you're self-employed, don't forget about the self-employment tax (15.3% for Social Security and Medicare)! Deducting education expenses on Schedule C doesn't just save you income tax, it also reduces your self-employment tax. Sometimes that makes the business deduction more valuable than education credits, depending on your situation.

This is such a helpful thread! As someone who's also navigating the self-employment + student combo, I wanted to add that timing can really matter here. If you're planning to graduate soon and your income is expected to increase significantly after graduation, it might be worth considering whether to take the business deduction this year (which reduces your current SE tax burden) or save some expenses for next year when you might be in a higher tax bracket. Also, keep really detailed records of which specific courses relate to your consulting work. The IRS likes to see a clear connection between the education and your business activities. I keep a simple spreadsheet noting how each class directly applies to the services I provide - makes it much easier come tax time! One last thing - if you're paying for textbooks, software, or other course materials that you also use for your freelance work, those can often be deducted as business expenses too, separate from tuition.