Can you deduct software subscriptions for a side hustle?

Yes — in many cases, you can deduct software subscriptions for a side hustle if they are ordinary and necessary for the business.

General rule

• Business-only software: If the subscription is used only for your side hustle, you can usually deduct the full cost.
• Mixed personal/business use: If you also use it personally, you should deduct only the business-use portion.

U.S. tax return treatment

If you’re a sole proprietor or single-member LLC taxed as a sole proprietor, these costs are generally reported on Schedule C as a business expense. The exact line can depend on how you categorize the expense in your records and tax software, so it’s best to follow the form instructions or your preparer’s guidance rather than relying on one specific line item.

Good records to keep

• receipts or invoices
• proof of payment
• a note explaining how you determined the business-use percentage if the subscription is shared

Important caveat

Tax treatment can vary by your entity type, country, state, and whether the software is mainly for business or personal use. In general, I can’t verify a blanket rule that software subscriptions are fully deductible everywhere; the rules depend on the applicable tax authority. For anything beyond a simple side hustle, it’s worth confirming with a CPA or the IRS instructions for your specific filing situation.