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Are CLE costs tax deductible?

Yes — CLE costs can be tax deductible in the U.S., but only if they meet IRS rules (they must maintain or improve skills in your current profession and not qualify you for a new profession). These are considered work-related education expenses under IRS Topic 513.

CLE expenses must satisfy the “maintain or improve skills” test or be legally required for your profession; if they don’t, they won’t qualify. Under current tax law, unreimbursed employee expenses (including CLE) are not deductible for W-2 employees through 2025, but they may be deductible for self-employed attorneys as ordinary and necessary business expenses.

Details:

  • Qualifies if: Maintains or improves skills, or is legally required.
  • Does not qualify if: Education prepares you for a new profession (e.g., bar exam costs).
  • Self-employed: May deduct CLE as business expense.
  • Employees: Unreimbursed CLE costs not deductible 2018-2025 under TCJA.
  • Associated costs: Registration, books, travel, lodging, and 50% of meals may be deductible if directly tied to qualifying CLE.

Key Takeaway
Yes — CLE costs may be deductible if they maintain or improve professional skills and are not for a new profession, but current law limits deductions for W-2 employees. Self-employed attorneys may deduct CLE as a business expense.

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