1. Business use of your vehicle
Standard mileage or actual costs. Mileage rates.
2. Home office
Regular and exclusive use. Rules.
3. Equipment and supplies
Computers, tools, materials. Larger purchases may be depreciated or expensed under special rules.
4. Software and subscriptions
Business software, cloud storage, design tools.
5. Advertising and marketing
Website costs, ads, business cards.
6. Professional fees
Accountants, attorneys and consultants for the business.
7. Phone and internet
The business-use share.
8. Business insurance
Liability, professional and similar policies.
9. Licenses and permits
Annual business licenses and fees.
10. Education and training
Courses that maintain or improve skills in your current business.
11. Travel
Transportation, lodging and incidentals for business trips away from your tax home. Records required.
12. Meals (limited)
Business meals are generally only partially deductible and require documentation of who, what and why.
13. Bank and payment-processing fees
Platform fees and merchant fees; compare with your 1099-K.
14. Retirement plan contributions
SEP-IRA, solo 401(k) and similar plans, claimed as adjustments to income.
15. Self-employed health insurance
Premiums for you, spouse and dependents may be deductible as an adjustment, subject to rules.
Also check
- Half of self-employment tax.
- The qualified business income deduction.
- Startup costs, which have special limits.
What isn’t deductible
- Commuting.
- Personal clothing and groceries.
- Fines and penalties.
- Expenses you can’t substantiate.
Use the printable checklist and read the full self-employed guide.
Records that make deductions stick
- Receipts and invoices showing date, vendor, amount and what it was for.
- Bank and card statements kept separate from personal spending whenever possible.
- A mileage log with dates, destinations and purposes.
- A short note on the business purpose of any travel, meal or large purchase.
The IRS can ask you to substantiate any deduction, and a deduction you can’t support may be disallowed with penalties and interest. See how long to keep records.
Don’t forget the payment side
Deductions lower what you owe, but you still need to pay as you go. Work out your quarterly amounts with our estimated taxes guide, and remember that self-employment tax is calculated before most income-tax adjustments. If you do gig work, read gig worker taxes.
Official sources
- IRS Publication 535: Business expenses
- IRS Publication 334: Tax guide for small business
- IRS: About Schedule C
- IRS: Self-Employed Individuals Tax Center
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.