Do yearly software 'subscriptions' like Adobe creative cloud count as office expenses?

9 replies
229 views

and can I deduct this without the home office deduction?

TurboTax Self Employed Online

Answer

Expert Reviewed

Yes, you would just list those under Business Expenses.

You do not have to have the home office deduction to deduct software subscriptions or other expenses such as postage, office supplies, phone expenses, advertising, etc.

clarenmcl

Level 2

If the yearly subscription was mostly personal use, and a little for my job, can I deduct them at all?

Anonymous

Answer

Expert Reviewed

Yes, you would just list those under Business Expenses.

You do not have to have the home office deduction to deduct software subscriptions or other expenses such as postage, office supplies, phone expenses, advertising, etc.

amandagmoodyAuthor

Level 2

If I used them solely for business related things, I can deduct the full cost?

Cmclemore95

Level 2

What if you use the subscription for work but not being the business owner I.e. freelancing or if your job entails handling the business’s social media?

Monikak11

Level 6

Yes, you can deduct subscriptions (software, apps, publications) used for your Schedule C business if they are "ordinary and necessary" for your operations.

In TurboTax, enter these under Business Expenses > Other Common Business Expenses > Other Miscellaneous Expenses. For hybrid (personal/business) use, only deduct the business percentage.

Under current law, Employee Business Expenses are no longer deductible, with rare exceptions.

See this tax tips article for more information about reporting self- employed business deductions.

@Cmclemore95