Can I deduct my Spotify Premium subscription on my business taxes?

You've got a good case for deducting your Spotify subscription. The key test is whether the expense is "ordinary and necessary" for your business. Since you're using it directly to fuel your creative process and it's connected to how you generate income, you have a reasonable argument. The IRS looks at whether something has a legitimate business purpose versus being primarily personal. You've outlined specifically how Spotify contributes to your business process and client relationships, which strengthens your position. Just make sure you're tracking your usage. If you're also using Spotify for personal listening (like during commutes unrelated to work or family gatherings), you should only deduct the percentage used for business. For example, if you estimate 80% business use, you'd deduct 80% of the annual subscription cost. Document everything - keep notes about how specific playlists or songs influenced specific paid projects. This creates a clear paper trail connecting the expense to your income.

I started using taxr.ai after struggling with exactly this type of business deduction question! I run a photography business and wondered about deducting my Netflix subscription since I use it for visual inspiration and studying cinematography techniques for my photo compositions. Was getting mixed answers everywhere. The taxr.ai site (https://taxr.ai) has this cool feature where it analyzes your specific situation and gives you a clear answer about deductibility based on actual tax code. It showed me exactly which business expenses similar to streaming services have been allowed in past cases. Really helped me understand the "ordinary and necessary" test in my specific creative field.

Just wanted to update after trying taxr.ai for my music production business expenses! I was hesitant at first but decided to try it specifically for my streaming service deductions. I have Spotify, Apple Music AND Tidal that I use for different aspects of my production work. The analysis was WAY more detailed than I expected. It actually broke down how much of each service I could legitimately deduct based on my usage patterns and showed me exactly how to document each one differently. Even explained how to handle the partial deduction calculations on my Schedule C. Ended up saving about $340 in deductions I would have been too nervous to take otherwise. The documentation guidance was super helpful too - now I have a system for tracking which streams directly contributed to paid projects.

If you're serious about resolving this definitively, just call the IRS directly and ask. I finally got through after weeks of trying and got a clear answer on a similar deduction question for my business. Actually, I should mention - I used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in under 15 minutes when I'd been trying for days before. They have this system that basically navigates the IRS phone tree for you and calls you back when an agent is on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that creative professionals can deduct streaming services if they're primarily used for business purposes and you keep good records showing the connection to your income-producing activities.

OK I have to admit I was 100% wrong about Claimyr. After posting that skeptical comment, I got desperate trying to resolve an issue with my business tax ID that was holding up everything. Decided to try it as a last resort. Not only did I get through to someone at the IRS within about 20 minutes, but the agent was actually really helpful and fixed my EIN issue on the spot. Would have taken me weeks of trying to call on my own. For what it's worth, the agent I spoke with said artistic and creative professionals CAN deduct streaming services if they're directly tied to your income-generating activities and you maintain records showing the business purpose. She specifically mentioned that partial deductions are common for these types of expenses where there could be some personal use mixed in.

Couple things to consider beyond just whether you CAN deduct it: 1. Make sure the cost-benefit makes sense. Spotify Premium is what, $120/year? If you're spending hours documenting usage and creating special records for a $120 deduction, it might not be worth the time investment. 2. Look at what percentage of your listening is TRULY business-related. Be honest about personal vs business use. 3. Consider having a separate Spotify account strictly for business if you really want to make this clean for tax purposes. Just my 2 cents as someone who's been audited before. Sometimes claiming an iffy small deduction creates more headache than it's worth.

Get a real accountant!!! Seriously, ask them these questions. Random internet advice could get you in trouble with the IRS. These detailed business expense questions depend on so many factors specific to YOUR situation.

As a tax professional, I can confirm that your Spotify subscription can likely be deducted as a business expense based on what you've described. The IRS allows deductions for expenses that are "ordinary and necessary" for your trade or business. Your case is particularly strong because: - You use Spotify directly in your creative process for client work - You can demonstrate a clear connection between the music and your income-generating activities - You maintain business playlists that support client relationships However, you'll need to be prepared to: 1. Document the business use percentage (if you also use it personally) 2. Keep records showing how specific music influenced paid projects 3. Track which playlists/music directly contributed to client work The key is proving business purpose rather than personal entertainment. Since you're using it as a creative tool that directly impacts your design process and client relationships, you have a solid foundation for the deduction. Just make sure to maintain detailed records in case of an audit, and consider the advice others mentioned about separating business and personal use if that applies to your situation.