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Can you write off are subscriptions tax deductible?

TL;DR

Subscriptions can be tax-deductible if they are ordinary and necessary for your business. Personal subscriptions, however, are not deductible.

Detailed Answer

Subscriptions are deductible when they are directly related to your trade or business. For example, a freelance graphic designer can deduct subscriptions to design software or industry publications. However, subscriptions for personal use, such as a streaming service for entertainment, are not deductible. It's important to differentiate between personal and business use, and only the business-use portion is deductible if a subscription serves both purposes.

Where to Put It on the Tax Form

Schedule C, Line 27a

Real World Example

A freelance writer subscribes to an online research database for $200 annually to access industry reports and articles necessary for their work. This expense is deductible as it is directly related to their business activities.

Audit Risk & Documentation Tips

Audit risk is moderate. Keep detailed records such as receipts, invoices, and a description of how each subscription is used in your business. If a subscription is used for both personal and business purposes, maintain a log to substantiate the business-use percentage.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162

Relevant Industries

FreelancersConsultantsGraphic DesignersWritersSoftware Developers

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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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