When I Purchase a Subscription Is It Tax Deductible?
Some occupations and job fields require you to keep up with the latest developments. You can keep updated with these developments by subscriptions to sources related to your occupation. Even subscriptions needed to entertain customers while they wait for service may be tax-deductible. These include, but are not limited to, doctors, hair stylists, barbers and other professions where waiting may be required.
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Deductibility Requirements
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Subscriptions to professional, technical and trade journals and magazines must be related to your trade or field. This includes Internet-based subscriptions for websites. Disability or impairment-related expenses for subscriptions are tax-deductible if they are required to perform your work duties. Disability-based subscriptions include additional fees paid for Braille versions.
Deducting Subscription Expenses
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If you itemize your deductions on Form 1040, Schedule A, any unreimbursed expenses for subscriptions required by your employer are tax deductible. These expenses must exceed 2 percent of your adjusted gross income (AGI) on line 38 of Form 1040. Self-employed people can deduct subscriptions as outright expenses on Form 1040, Schedule C.
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Time Frame
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Subscriptions extending more than one year must be prorated accordingly for each year. A subscription costing $240 over three years must be deducted at $80 a year. Alternately, if a subscription is irregular, you can prorate it over the number of months. Irregular subscriptions may be 18-month subscriptions or those started during the year. An example would be an 18-month subscription for $180 started during June; the monthly rate is $10, so the first year deduction would be $70 and $110 for the second year.
Restrictions
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Any subscriptions considered for personal, recreation and entertainment purposes are not tax-deductible.
Warning
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Always keep your receipts and invoices for subscriptions to substantiate your tax deductions. This information should not be considered legal advice. Consult your accountant, tax professional or other financial professional.
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