Can I Write This Off?Can I write off a subscription to ChatGPT?
TL;DR
Yes, you may be able to write off a subscription to ChatGPT, but it depends on how you use it.
Detailed Answer
If you are using ChatGPT for personal use, you cannot deduct the cost. However, if you are using it for business purposes, you may be able to deduct the expense as a business expense. For example, if you are a freelancer or a small business owner and you use ChatGPT to automate customer service or generate content, you can deduct the cost as a business expense. However, the expense must be both ordinary and necessary for your business. An 'ordinary' expense is one that is common and accepted in your trade or business. A 'necessary' expense is one that is helpful and appropriate for your trade or business. If you only use ChatGPT part of the time for business, you may only deduct the portion of the cost that corresponds to the business use.
Where to Put It on the Tax Form
Schedule C, Line 27a
Real World Example
A freelance writer who uses ChatGPT to generate ideas and draft articles can deduct the subscription cost as a business expense.
Audit Risk & Documentation Tips
To reduce audit risk, keep a record of your subscription receipts and a log of how you use ChatGPT for your business. If audited, you may need to provide proof that the subscription was used primarily for business purposes.
IRS Reference
IRS Publication 535 (Business Expenses)
Relevant Industries
FreelancersSmall BusinessContent CreatorsCustomer Service
Popular Related Pages
Related Questions
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 3, 2025