Can I Write This Off?

Can I write off Zoom subscription fees?

TL;DR

Zoom subscription fees can be deductible if they are ordinary and necessary business expenses.

Detailed Answer

Zoom subscription fees are deductible as a business expense if they are used for business purposes. This means that if you use Zoom for client meetings, team collaborations, or other business-related activities, you can deduct these expenses. However, if Zoom is used for personal purposes, such as social calls or non-business activities, those portions of the subscription are not deductible. It's important to allocate the expense proportionally if there is both personal and business use.

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 line for corporations or partnerships.

Real World Example

A freelance graphic designer uses Zoom to conduct client consultations and team meetings. The designer pays $150 annually for a Zoom subscription. Since the subscription is used exclusively for business purposes, the entire $150 is deductible.

Calculation Required

A calculation is required for this deduction.

If the Zoom subscription is used for both personal and business purposes, calculate the deductible portion by determining the percentage of business use. For example, if 70% of the use is for business, then 70% of the subscription cost is deductible.

Audit Risk & Documentation Tips

To minimize audit risk, maintain records of Zoom usage, such as meeting logs or schedules, to substantiate the business use. Keep receipts or invoices for the subscription fees and document the method used to allocate business versus personal use.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsRemote WorkersEducators

Popular Related Pages

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

Back to Search