Can I Write This Off?Can I write off graphic design software?
TL;DR
Graphic design software can be deductible if it is used for business purposes.
Detailed Answer
Where to Put It on the Tax Form
Schedule C (Form 1040), Part II, Line 18 for sole proprietors or appropriate business expense line for other business entities.
Real World Example
A freelance graphic designer purchases a subscription to Adobe Creative Cloud for $600 per year. Since the software is used exclusively for client projects, the designer can deduct the full $600 as a business expense on Schedule C.
Calculation Required
A calculation is required for this deduction.
If the software is used for both personal and business purposes, you must allocate the expense proportionally. For example, if 80% of the use is for business, then 80% of the cost can be deducted.
Audit Risk & Documentation Tips
To minimize audit risk, keep receipts and documentation showing the purchase of the software. Maintain records of how the software is used in your business, such as project files or client invoices. If the software is used for both personal and business purposes, document the method used to allocate the expense.
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 7, 2025