Checkmark iconCan I Write This Off?

Can I write off my subscription to Claude?

TL;DR

A subscription to Claude can be deductible if it is used for business purposes.

Detailed Answer

The cost of a subscription to Claude is deductible if it is ordinary and necessary for your trade or business. For instance, if you use Claude to assist with tasks related to your business, such as generating content, analyzing data, or other business-related activities, it can be considered a business expense. However, if the subscription is used for personal purposes, it is not deductible.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 27a for sole proprietors or as a business expense on the relevant business tax return form.

Real World Example

A freelance writer subscribes to Claude to help generate ideas and draft articles for clients. The subscription cost is included as a business expense on their Schedule C.

Audit Risk & Documentation Tips

Maintain records showing how Claude is used for business purposes, such as invoices, usage logs, or project notes. Keep receipts of the subscription payments. Be prepared to demonstrate the business necessity of the subscription if audited.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsContent Creators

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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