Jeanette Said:

Online courses tax deductible when changing careers?

We Answered:

At the first glance, there are a number of potential places where you might deduct your training. However, most likely none of them applies in your situation.

Tuition and fees deduction (line 34 of 1040) and Education credit (line 50, either Hope Credit or Lifetime Learning Credit) are only applicable if your training is provided by an eligible educational institution, i.e. college, university, vocational schools, or other institutions eligible to participate in student aid program administered by the Department of Education.
See IRS Publication 970 http://www.irs.gov/publications/p970/ind…

Job Expenses (Line 20 Schedule A) is used for ordinary and necessary expenses that are common and accepted in your current field of trade, business, or profession. A training that will help you look for a job in another field is not considered by IRS an ordinary and necessary expense.
See IRS Schedule A instruction
http://www.irs.gov/instructions/i1040sa/…

I don't know about Massachusetts state income tax. As far as federal tax, you can't deduct $3500.

Best wishes.