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.

On this page: Popular · Categories · How to use this guide · FAQ

Browse by category

Looking for tools to track expenses year-round? See Recommended Tools.

How to use this guide

Each lookup page answers one question quickly — yes, no, or depends — then explains the most common conditions, exceptions, Schedule C line references, and what records to keep. Most pages include a worked example showing the actual deductible amount.

Deductibility generally depends on three things: who you are (self-employed vs employee), how the expense is used (business vs personal), and whether you can keep reasonable records supporting the deduction. When in doubt, the answer is almost always "it depends on whether the expense is ordinary and necessary for your specific business."

If you're not sure where to start, choose the expense closest to your situation and follow the "Related lookups" section on each page to explore nearby deduction categories.

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