What expenses can I claim if I’m self-employed?
You can claim any business expense that is considered "ordinary and necessary" to carry on the business. An ordinary expense is one that is common and accepted within a specific business. A necessary expense is one that is helpful and appropriate for the taxpayer's trade or business.
Examples of some of the most common expenses include:
- Car and Truck Expenses: Vehicle expenses can be calculated using actual expenses or the standard mileage rate. Read more about these deductions here.
- Supplies: Includes costs for general operating supplies not associated with the cost of goods sold.
- Office Expense: Includes supplies such as pens, paper, and postage.
- Advertising: Costs associated with promoting the business.
- Taxes and Licenses: Including business licenses and regulatory fees paid to operate their business.