Is Cursor Tax Deductible? Yes — 100% Deduction for Self-Employed
100%
Deductible
Line 18
Schedule C
Office expense
Category
$20/mo
Typical cost
Cursor, an AI-powered code editor, qualifies as a fully deductible business software expense for self-employed developers and single-member LLCs. You can deduct the full subscription cost on Schedule C as an ordinary and necessary business expense. At roughly $20 per month, this recurring software cost reduces your taxable income dollar-for-dollar.
Who qualifies?
Self-employed developers, freelance programmers, and single-member LLCs that use Cursor as a primary work tool qualify for this deduction. You must use the software regularly in your business—occasional or personal use doesn't qualify.
How to claim it
- 1 Keep receipts and subscription confirmations showing monthly or annual Cursor charges.
- 2 Sum your total Cursor expenses for the tax year and enter on Schedule C, Line 18 (Office Expense).
- 3 If you bundle Cursor with other software or subscriptions, allocate the Cursor-specific amount only.
Pro tip
Pay for Cursor annually instead of monthly—you'll lock in the subscription rate and simplify record-keeping with a single year-end receipt for your tax file.
Source: IRS Publication 535: Business Expenses
Judy automatically tracks Cursor
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