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Software & SubscriptionsFull Deduction

Music Licensing & Royalty-Free Music

Music licensing services like Epidemic Sound, Artlist, and royalty-free music.

Tax Form

Schedule C, Line 18

Estimated Savings

$100-500/year

Best for

YouTubeTikTokInstagramTwitch

Income Level

Just Starting (<$25k)Growing ($25k-$100k)Established ($100k+)

How It Works

Music licensing subscriptions and royalty-free music purchases for your content are fully deductible. This includes services like Epidemic Sound, Artlist, Musicbed, Soundstripe, and individual track purchases. Background music is essential for professional content and these costs are legitimate business expenses.

IRS Rules & Requirements

  • Subscription services are deducted in the year paid
  • Individual track purchases are also deductible
  • Must be used for business content creation
  • Keep receipts and subscription records
  • Sound effects libraries also qualify

Real Examples

Epidemic Sound subscription at $144/year = fully deductible

Artlist subscription at $199/year = fully deductible

Individual royalty-free track purchases = fully deductible

Common Mistakes to Avoid

  • Forgetting to deduct music licensing as a business expense
  • Not keeping subscription payment records
  • Missing deductions for sound effects libraries

Pro Tip

Many music licensing services offer annual plans at a discount. The upfront cost is fully deductible in the year you pay it.

Related Deductions

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