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Can I deduct is chatgpt subscription tax deductible business expense?

TL;DR

A ChatGPT subscription can be a deductible business expense if it is used for business purposes.

Detailed Answer

The cost of a ChatGPT subscription can be deducted as a business expense if it is ordinary and necessary for your trade or business. For example, if you use ChatGPT to generate content, assist with customer service, or perform tasks that are integral to your business operations, it can be considered deductible. However, if the subscription is used for personal purposes, it is not deductible. It's important to maintain documentation that supports the business use of the subscription.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 27a - Other Expenses

Real World Example

A freelance writer subscribes to ChatGPT to help generate article ideas and draft content for clients. The subscription is used exclusively for client work, making it a deductible business expense.

Audit Risk & Documentation Tips

To minimize audit risk, keep records of how the subscription is used in your business, such as logs or notes of tasks performed using ChatGPT. Retain invoices or receipts for the subscription and document the business purpose in case of an audit.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessContent CreatorsConsultantsTech Startups

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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

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