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YouTube premium subscription if using to watch educational content

TL;DR

A YouTube Premium subscription may be deductible if it is used primarily for business-related educational content, but personal use must be excluded from the deduction.

Detailed Answer

The cost of a YouTube Premium subscription can be deductible as a business expense if it is used primarily for educational content directly related to your trade or business. For example, if a freelance graphic designer subscribes to YouTube Premium to access tutorials and courses that enhance their skills, this could be deductible. However, if the subscription is used for both personal entertainment and business education, only the portion attributable to business use is deductible. This requires a reasonable allocation of the expense based on usage. Personal use must be excluded, and the business use should be substantiated with documentation such as a log of watched content and its relevance to your business.

Where to Put It on the Tax Form

Schedule C, Line 27a (Other Expenses) for sole proprietors. For partnerships or corporations, report on the appropriate business tax return form.

Real World Example

A freelance graphic designer pays $12 per month for YouTube Premium to access design tutorials. They estimate 70% of their viewing time is spent on business-related content. Therefore, they can deduct $8.40 per month ($12 x 70%) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible portion, determine the percentage of business use by tracking the time spent on business-related content versus personal use. Multiply the total subscription cost by the business-use percentage to find the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of the content watched and its relevance to your business. Maintain logs or notes on how each video contributes to your professional development. Save subscription receipts and any related documentation to substantiate the business use portion.

IRS Reference

IRS Publication 535 (Business Expenses) and IRC §162 (Trade or Business Expenses).

Relevant Industries

FreelancersConsultantsEducatorsContent 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 February 27, 2026

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