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Oliver Cheng

Is a Spotify Premium subscription tax deductible for my business?

Hey everyone, I've been searching everywhere online but can't find a clear answer about whether I can deduct my Spotify subscription as a business expense on my taxes. **Can I legitimately deduct my Spotify subscription?** My reasoning: 1. I run a graphic design business, and almost EVERY design I create incorporates quotes or concepts inspired by songs I discover through Spotify. 2. I literally spend hours each week exploring new music on Spotify searching for the perfect lyrics or mood to inspire my next design project. 3. A huge part of my client engagement comes from how my designs connect emotionally through the music-inspired elements. Clients frequently share my work specifically because of how the visual and lyrical components resonate with them. 1. Important: I never use direct copyrighted lyrics in my commercial designs - I always transform them into original concepts while maintaining the inspirational connection. 4. I maintain curated Spotify playlists that I share with my client base, sometimes featuring music from clients themselves, which builds stronger business relationships and leads to more project inquiries. 5. The music drastically enhances my productivity during design work and frequently sparks new creative concepts that translate into billable projects. I genuinely consider music streaming to be essential to my creative business operations. While I could use any platform, Spotify has become integral to my creative workflow. That's why I strongly believe my Spotify subscription should qualify as a legitimate business expense and be tax deductible. Without regular access to this music library for inspiration, my business simply wouldn't generate the same level of income. Would really appreciate your insights on this! Is this deductible or am I stretching things? Thanks everyone!

Taylor To

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This is actually a good question that comes up for many creative professionals. The key to deductibility is whether the expense is "ordinary and necessary" for your business. Based on what you've described, you have a reasonable case for deducting your Spotify subscription. The IRS allows deductions for expenses that are common in your industry and helpful for your business. Since you're using the music directly as inspiration for your design work that generates income, it's connected to your business purpose. The critical factor is documentation. You should maintain records showing how you use Spotify professionally - perhaps screenshots of playlists you've created for work, notes about which songs inspired which projects, or examples of your designs with the musical inspiration noted. This creates a clear business connection if you're ever questioned. One caution: if you also use the subscription personally, you'll need to allocate between business and personal use. You can only deduct the business portion. If it's 80% business use, you can deduct 80% of the cost.

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Oliver Cheng

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Thank you for this helpful response! I do use the same account for personal enjoyment occasionally. Would you recommend just estimating a percentage, like 80% business/20% personal, or should I track my usage more precisely? Also, would it be better to get a separate Spotify account exclusively for business use to make the deduction cleaner?

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Taylor To

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For the business/personal split, a reasonable estimate is generally acceptable, but having some basis for your calculation is important. You might track usage for a typical month to establish your percentage. Getting a separate business-only account would definitely make the deduction cleaner and easier to defend. If you go this route, make sure you pay for it from your business account and use it exclusively for business purposes. This creates a clear separation that makes the deduction much more straightforward and would likely be worth the extra subscription cost come tax time.

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Ella Cofer

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After struggling with similar tax deduction questions for my photography business, I discovered this AI tax assistant called taxr.ai that was super helpful! I uploaded screenshots of my business expenses (including my music subscriptions) and it analyzed everything, telling me exactly what I could deduct and why. The tool specifically addressed my creative subscription services and explained how to properly document them as business expenses. Saved me tons of research time and gave me confidence about taking deductions I wasn't sure about before. You might want to check out https://taxr.ai if you're looking for specific guidance on creative business deductions like this.

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Kevin Bell

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Does it actually give tax advice that's legitimate? I'm always skeptical of AI tools making tax recommendations since tax law is so specific. Did it give you any documentation to support its recommendations in case of an audit?

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I've been thinking about trying an AI tax tool. How does it compare to just asking a regular accountant? I pay my CPA like $300 per hour and feel like half the time she's just googling answers to my questions anyway.

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Ella Cofer

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It's definitely legitimate - it actually cites specific IRS publications and tax court cases when explaining why certain deductions are allowed. That's actually what impressed me most - it wasn't just giving general advice but backing everything up with specific tax code references. For your question about comparing to an accountant, I still use my accountant for final review, but taxr.ai helps me prepare everything in advance so I'm not paying my accountant's hourly rate for basic research. I've found my accountant actually appreciates that I come prepared with organized information and specific questions rather than just dumping a box of receipts on their desk.

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Kevin Bell

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Just wanted to update after trying taxr.ai that the previous commenter recommended. I was skeptical at first (as you can see from my question), but it actually provided really specific guidance on my creative business deductions. I uploaded my Spotify subscription receipt along with a brief description of how I use it for my voiceover business, and it gave me detailed analysis citing actual tax publications that support the deduction. It even suggested documentation practices I should maintain to support the business use if I'm ever audited. What surprised me was how it handled the personal/business split - it recommended specific approaches based on my usage patterns rather than just a generic answer. Much more helpful than the general advice I was finding on reddit!

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Felix Grigori

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Max Reyes

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Felix Grigori

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Max Reyes

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I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself because I've been trying to reach the IRS about a business credit card deduction issue similar to this Spotify question. The service actually worked exactly as described. It took about 45 minutes (not instant, but WAY better than my previous attempts), and I got connected with an actual IRS representative who answered my question about subscription service deductions. The agent confirmed that digital subscriptions can be legitimate business expenses if they're ordinary and necessary for your specific business. I'm still shocked it worked, but I got the official answer I needed directly from the IRS. Sometimes it's worth admitting when you're wrong!

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Another angle to consider - I'm an artist who deducts my Adobe Creative Cloud subscription without question because it's clearly for my design work. Music that directly inspires your creative output isn't fundamentally different. The key factor the IRS looks at is whether something is "ordinary and necessary" for your specific business. For a creative professional whose work is directly influenced by music, I think you're on solid ground. Just be careful about the business vs. personal usage split. I recommend keeping a log for a month showing how you use Spotify for work - note which playlists are for specific client projects, which songs inspired which designs, etc. This documentation will be valuable if you're ever questioned.

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Adrian Connor

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What about deducting things like Netflix or Disney+ if you're a filmmaker who watches content for "inspiration"? Where do you draw the line between legitimate research and entertainment that you'd watch anyway?

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That's where the "ordinary and necessary" test becomes crucial. For filmmakers, watching films/shows as reference for technique, storytelling, or visual styles can absolutely be legitimate research. The key is documentation and specificity. For example, a filmmaker who logs which shows they watched for specific research purposes, takes notes on techniques studied, and can demonstrate how this research directly influenced paid projects has a much stronger case than someone who just claims "I watch Netflix for inspiration." The difference is in the documentation and direct connection to income-producing work.

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Aisha Jackson

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Just to offer another perspective - I'm a freelance writer and my accountant has approved deducting my Spotify premium as a business expense for years. I write articles about music and culture, so it's clearly connected to my income. For your graphic design business, I'd say it's in a gray area but defensible if you're really using it as you describe. The IRS isn't going to come after you for a $120/year deduction if you have a reasonable business purpose. Just make sure you can demonstrate how it connects to your income (maybe keep a spreadsheet showing which songs inspired which paid projects).

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I've been deducting my Netflix and Hulu subscriptions for my content marketing business for years! I write about entertainment trends and need to stay current on popular shows. Never had any issues with the IRS over it.

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As someone who's dealt with similar creative business deductions, I think you have a solid case for deducting your Spotify subscription. The connection between music inspiration and your graphic design income seems genuine and well-documented. A few practical suggestions to strengthen your position: 1. **Create a dedicated business playlist structure** - Keep playlists organized by client projects or design themes. This shows intentional business use rather than casual listening. 2. **Log inspiration connections** - Even a simple note in your project files mentioning "inspired by [song name] for emotional tone" creates a paper trail linking the subscription to billable work. 3. **Consider the 80/20 split you mentioned** - That seems reasonable, but tracking usage for a month could give you a more defensible percentage if questioned. 4. **Document client playlist sharing** - Since you mentioned sharing curated playlists with clients, keep records of these interactions as they directly support business relationship building. The "ordinary and necessary" test really comes down to whether other graphic designers commonly use music for inspiration (they do) and whether it's necessary for your specific business model (sounds like it is). A $10-12/month deduction with proper documentation is unlikely to raise red flags, especially given how integral music is to creative work. Just make sure you're consistent with your documentation approach across all similar subscription deductions.

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