Dues and subscription fees are not uncommon for many individuals. Taxpayer or not, especially in this digital age, we encounter several expenses that fall under this category. And if the IRS criteria are met, such expenses can qualify as business deduction.  

Dues vs Subscription 

Dues are regular membership fees paid to organizations or clubs to support its programs and activities while subscriptions are periodic fees paid in agreement to access a product or service. Unlike dues, subscription fees are paid by non-members to access an organization’s product or service. 

Dues as a Deduction  

Dues paid to professional, civic, and business-related organizations can be deducted unless their main purpose for existing is to provide entertainment to its guests or members. In general, you cannot deduct membership fees paid to clubs or organizations that are for recreation, entertainment, or pleasure, such as golf, athletics, hotels, airline, dining, or any other clubs for social purpose.

Per IRS, you can deduct the dues paid for the following organizations: 

• Boards of trade 

• Business leagues 

• Chambers of commerce 

• Civic or public service organizations 

• Professional organizations 

• Real estate board 

• Trade associations 

Subscriptions as Deduction 

Subscription fees can be deducted if they are proven to be an ordinary and necessary expense for your business. The subscription must be directly related to your trade, business, or profession and must not be made for personal use. Common examples are the following: 

• Subscription to industry-specific journals, magazines, online publications that provide valuable information to your trade or profession. 

• Subscriptions to business-related software or tools such as accounting software, digital calendar organizer, project management software, design software, and other necessary business tools. 

• Subscriptions to online streaming services if they can be proven to be necessary in your business operation. 

Want to learn more? 

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