Expense deductibility guide
Clear yes / no / depends answers for common business expense deductions — with practical conditions, Schedule C line references, examples, and recordkeeping notes. Built for freelancers, self-employed individuals, and small business owners.
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Popular questions
- Are AI subscriptions tax deductible?
- Is a home office tax deductible?
- Is mileage tax deductible?
- Are meals tax deductible?
- Is internet tax deductible?
- Is software tax deductible?
- Is health insurance tax deductible?
- Are content creator expenses tax deductible?
Start with the closest match to your situation, then use the "Related lookups" section on each page to explore adjacent expenses.
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- Home-based work
- Is a home office tax deductible?
- Is rent tax deductible?
- Are utilities tax deductible?
- Is internet tax deductible?
- Communication
- Is a cell phone tax deductible?
- Is a phone bill tax deductible?
- Travel & vehicle
- Is mileage tax deductible?
- Are travel expenses tax deductible?
- Are meals tax deductible?
- Is vehicle insurance tax deductible?
- Tools & equipment
- Is equipment tax deductible?
- Is software tax deductible?
- Are AI subscriptions tax deductible?
- Are office supplies tax deductible?
- Are repairs and maintenance tax deductible?
- Professional & business costs
- Are professional fees tax deductible?
- Are marketing expenses tax deductible?
- Is education tax deductible?
- Are content creator expenses tax deductible?
- Finance & insurance
- Is health insurance tax deductible?
- Is insurance tax deductible?
- Is interest tax deductible?
Looking for tools to track expenses year-round? See Recommended Tools.
FAQ
What business expenses are tax deductible?
Common deductible business expenses for freelancers and self-employed individuals include home office costs, mileage and vehicle expenses, business meals (50% limit), software and AI subscriptions, equipment (via Section 179), professional fees, health insurance premiums, business interest, marketing costs, and education related to your current work. Each category has its own eligibility rules and recordkeeping requirements.
Can I deduct expenses if I am self-employed?
Yes. Self-employed individuals and sole proprietors filing Schedule C can deduct ordinary and necessary business expenses. Common deductions include home office, mileage, equipment, software, professional fees, health insurance, and business meals. Employees have more limited deduction options under current tax law.
What is the difference between a tax deduction and a tax credit?
A tax deduction reduces your taxable income, which indirectly lowers your tax bill. A tax credit directly reduces the tax you owe, dollar for dollar. Deductions are more common for business expenses — a $1,000 deduction at a 22% tax rate saves $220. A $1,000 tax credit saves $1,000 regardless of your tax rate.
What records do I need to keep for business expense deductions?
For most business expense deductions keep: receipts or invoices showing the amount paid, proof of payment (bank statement or card record), a brief note describing the business purpose, and for mixed-use expenses, a record of the business-use percentage. The IRS expects contemporaneous records — made at or near the time of the expense — not reconstructed at tax time.
Last reviewed: April 14, 2026