Schedule C deductions: what self-employed people can write off

Q: What can I deduct on Schedule C?

Any expense that is ordinary and necessary for your business (IRC §162): home office, business mileage or vehicle costs, phone and internet, software and subscriptions, supplies and equipment, advertising, professional and legal fees, business travel, business meals (generally 50%), and education that maintains or improves your work. Self-employed health insurance and retirement contributions are also deductible, though they're taken as adjustments to income rather than on Schedule C itself.

Q: Can I deduct a home office?

Yes, if you use part of your home regularly and exclusively for business. The simplified method deducts $5 per square foot of office space up to 300 square feet (a $1,500 maximum). The actual-expense method deducts the business-use percentage of rent or mortgage interest, utilities, insurance, and depreciation. See IRS Publication 587.

Every dollar of legitimate business expense lowers the income you pay tax on. Here are the deductions self-employed people most often miss — and where each one comes from in the tax code.

Updated June 2026

The one rule behind every deduction

A business expense is deductible if it's ordinary and necessaryfor your work — common in your field and helpful to your business (that's IRC §162, the foundation of business deductions). Keep a receipt or record, and if an expense is part personal, only the business share counts.

The deductions people miss most

Home office — regular and exclusive business use of part of your home. Simplified method: $5/sq ft up to 300 sq ft. Or deduct the business-use % of rent, utilities, and insurance. (Pub 587)
Vehicle & mileage — the standard mileage rate per business mile, or actual vehicle costs by business-use percentage. Keep a log. (Pub 463)
Phone & internet — the business-use portion of your monthly bills.
Software & subscriptions — tools you use to do the work: design apps, accounting, hosting, domains, stock assets.
Supplies & equipment — from printer paper to a laptop. Larger purchases may be expensed immediately under Section 179 or de minimis safe harbor. (Pub 946)
Advertising & marketing — ads, a website, business cards, promotional costs.
Professional services — your accountant, lawyer, contractors, and 1099 help.
Business travel & meals — travel away from home for work; business meals are generally 50% deductible. (Pub 463)
Education — courses that maintain or improve skills for your current business.

Two big ones that aren't on Schedule C

These are deducted as adjustments to income(on Schedule 1), not on Schedule C — but they're among the largest tax savers for the self-employed, so don't miss them:

Self-employed health insurance— premiums for you and your family, if you aren't eligible for an employer plan.
Retirement contributions — a SEP-IRA or Solo 401(k) lets you shelter a substantial share of profit while saving for retirement.

The hard part isn't knowing these exist — it's catching them in your bank feed before year-end. Taxottic surfaces 1,025 IRS-cited deductions and flags likely write-offs as your transactions come in, each linked to its IRC section and IRS publication.

Frequently asked

What can I deduct on Schedule C?

Any expense that is ordinary and necessaryfor your business (IRC §162): home office, business mileage or vehicle costs, phone and internet, software and subscriptions, supplies and equipment, advertising, professional and legal fees, business travel, business meals (generally 50%), and education that maintains or improves your work. Self-employed health insurance and retirement contributions are also deductible, though they're taken as adjustments to income rather than on Schedule C itself.

Can I deduct a home office?

Yes, if you use part of your home regularly and exclusively for business. The simplified method deducts $5 per square foot of office space up to 300 square feet (a $1,500 maximum). The actual-expense method deducts the business-use percentage of rent or mortgage interest, utilities, insurance, and depreciation. See IRS Publication 587.

Can I write off my car for business?

Yes, for the business-use portion. You can use the standard mileage rate (a set number of cents per business mile, which the IRS updates yearly) or the actual-expense method (the business-use percentage of gas, insurance, repairs, and depreciation) — but not both for the same vehicle in the same year. Either way, keep a contemporaneous mileage log. See IRS Publication 463.

This guide is general information, not tax, legal, or accounting advice, and isn't a substitute for a licensed CPA or tax attorney. Tax rules change and depend on your situation; figures here are illustrative. Verify specifics against current IRS guidance or with your preparer.