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Can I Deduct My Netflix Subscription?

Here’s how you too can deduct Netflix.

If you use Netflix or other streaming services for business purposes, you can deduct your subscription charges from your taxable income. But what is a legitimate business purpose? In this case, Shannon is an actress, and it is necessary for her to be constantly learning acting techniques and learn more about her industry by watching theatrical productions. So she can in fact deduct Netflix, Hulu or other subscriptions. She can also deduct movie tickets for business purposes. However, if your profession is not acting and you just want to “learn about acting,” that would not be considered a necessary business expense, and you would not be able to deduct Netflix etc.

Learn how you too can take Netflix as a tax deduction.

Netflix is one of the world’s most beloved streaming sites. The cost of a subscription may seem minimal at first, but it can quickly add up. And in some cases, it can even be tax-deductible.

Table of contents

Can you claim Netflix as a business expense?...Read more

What other subscriptions can you deduct?...Read more

Who can claim Netflix as a deduction?...Read more

Can you claim Netflix as a business expense?

To count as a deduction, or write-off, an expense has to serve a clear business purpose in your line of work. The IRS’s definition of what it considers to be a business expense is an expense that is both ordinary and necessary. So, if you feel like Netflix or any other streaming service is directly or indirectly necessary for your trade or business, you can claim it as a tax write-off. Some common freelance professions where you can claim the tax deduction include:

Acting
Direction
Scriptwriting
Dentists/Doctors
Airbnb hosts
Cafe owners

Note: if you’re a W2 employee in any of these professions then this tax deduction doesn’t apply to you at all; and, that is, because federal and state taxes are already withheld in every paycheck.

What other subscriptions can you deduct?

These days, there’s an abundance of subscriptions for everything from meals to music, to radio, clothing, movies, etc can all be delivered to your door for a small monthly fee. It may not seem like much, but if you think about how much does Netflix cost per month with tax, you’ll be surprised to know its impact. So, when it comes to determining what sort of subscriptions you can deduct, it majorly depends on your profession. As mentioned above, a business expense must serve a clear business purpose in your line of work. Here are some examples of subscriptions tax deductions on the basis of different professions:

A writer can deduct the cost of Grammarly or similar writing tools
An artist can deduct the subscription fee of Adobe Cloud
A marketer can deduct the cost of Google Analytics

Who can claim Netflix as a deduction?

To deduct any subscription, it must be directly related to your business. If you’re a part of the media industry, a content creator, where it’s necessary to have a Netflix subscription as a part of your research methods, then you can deduct it. Examples of tax deductible subscriptions include:

Netflix
Hulu
HBO
Roku
Spotify
Pandora
Peacock

Actors: Actors and actresses often need to consume content in order to stay on top of things in their industry, thus, they can claim Netflix and similar “necessary” subscriptions, as freelance tax deductions. Doctors: If you are a doctor and have a TV in your waiting room that you use to stream documentaries or movies while your clients/patients wait, the subscription can be considered as a legitimate write-off. Airbnb Hosts: You host guests and rent out the rooms of your house, where you provide them with amenities such as a TV with a Netflix/Hulu subscription. In that case, again, you can deduct Netflix and other subscriptions as they are required to keep your guests entertained. There are many other professions that allow you to deduct Netflix as a tax write-off.

Click here to find out how FlyFin can help you to take this as a deduction.

Start calculating tax deduction for Netflix Tax using A.I. If you use Netflix or other streaming services for business purposes, you can deduct your subscription charges from your taxable income. But what is a legitimate business purpose? In this case, Shannon is an actress, and it is necessary for her to be constantly learning acting techniques and learn more about her industry by watching theatrical productions. So she can in fact deduct Netflix, Hulu, or other subscriptions. She can also deduct movie tickets for business purposes. However, if your profession is not acting and you just want to “learn about acting,” that would not be considered a necessary business expense, and you would not be able to deduct Netflix, etc.

Frequently asked questions

FAQs

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