Can I deduct are airpods tax deductible?
TL;DR
AirPods can be tax-deductible if they are used exclusively for business purposes. Personal use disqualifies them from being fully deductible.
Detailed Answer
Where to Put It on the Tax Form
Schedule C, Line 27a for business expenses.
Real World Example
A freelance graphic designer purchases AirPods for $200 to use during client calls and virtual meetings. They determine that 80% of the use is for business purposes. Therefore, they can deduct $160 (80% of $200) on their Schedule C.
Calculation Required
A calculation is required for this deduction.
To calculate the deductible amount, determine the percentage of business use by tracking the time or instances of business versus personal use. Multiply the total cost of the AirPods by the business use percentage to find the deductible amount.
Audit Risk & Documentation Tips
Moderate audit risk. Keep detailed records of business use, such as a log of calls or meetings, and retain the purchase receipt. Document the calculation of business use percentage and be prepared to explain how you determined this percentage if audited.
IRS Reference
IRS Publication 535, Business Expenses.
Relevant Industries
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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 15, 2025