Is ChatGPT Plus Tax Deductible? Yes — 100% Deduction for Self-Employed
100%
Deductible
Line 18
Schedule C
Office expense
Category
$20/mo
Typical cost
If you use ChatGPT Plus for business tasks like writing, coding, research, or analysis, the full subscription cost is deductible as an office expense. This $20/month subscription qualifies as a legitimate business tool under IRS guidelines, similar to software licenses or professional services. You'll claim it on Schedule C, Line 18.
Who qualifies?
Self-employed individuals, sole proprietors, and single-member LLCs filing Schedule C can deduct ChatGPT Plus if they use it regularly for business purposes—writing content, client research, code generation, or strategic analysis. You must use it primarily for your business, not personal use.
How to claim it
- 1 Track your monthly ChatGPT Plus charges ($20/mo or annual billing equivalent) throughout the tax year using bank or credit card statements.
- 2 Sum your total annual ChatGPT Plus expenses and enter the amount on Schedule C, Line 18 (Office expense).
- 3 Keep your credit card or bank statements as documentation in case of an IRS audit; you can also screenshot your OpenAI billing page showing your subscription status.
Pro tip
If you subscribe annually instead of monthly, you'll save money upfront and have a single clear line-item receipt for audit purposes. Document *how* you use ChatGPT (e.g., 'client proposal writing,' 'code debugging,' 'market research') in a simple log—this strengthens your deduction if questions arise.
Source: IRS Publication 535: Business Expenses
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