Blog · Taxes ·
1099 Tax Deductions: What Independent Contractors Can Actually Write Off
If you get paid on a 1099, you've probably heard somebody say, "Just write it off!" about everything from their car to their Netflix. Let's clear that up, because the wrong write-off can cost you more than it saves.
Here's the rule the IRS uses: a business expense is deductible if it's ordinary (common and accepted in your line of work) and necessary (helpful and appropriate for your business). Personal, living, and family expenses don't count, even if you watch Netflix while you send invoices.
Now let's get into what usually does count.
Why Deductions Matter Extra for 1099 Workers
When you're a W-2 employee, deductions mostly lower your income tax. When you're self-employed, business deductions lower your net profit, and that lowers both your income tax and your 15.3% self-employment tax. Every legitimate dollar of expense works twice.
The 1099 Deductions Checklist
1. Car and mileage
For most rideshare drivers, delivery drivers, realtors, and mobile service folks, this is the big one. You can generally choose:
- Standard mileage rate: For 2026, 72.5 cents per mile (Jan. 1 to June 30) and 76 cents per mile (July 1 to Dec. 31)
- Actual expenses: The business-use percentage of gas, repairs, insurance, registration, depreciation, and so on
Either way, you need a mileage log with dates, miles, and the business purpose. Commuting from home to a regular workplace generally doesn't count. Because the rate changed mid-year, your 2026 log really needs dates.
2. Home office
If you use part of your home regularly and exclusively for business, and it's your principal place of business, you may deduct a home office. The IRS offers a simplified method (a set rate per square foot, up to a limit) or the regular method (actual expenses by percentage). The kitchen table you also eat dinner on usually won't qualify.
3. Phone and internet
Deduct the business-use percentage of your cell phone and internet. If you use your phone 60% for work, you can generally deduct about 60% of the bill. Be reasonable and consistent.
4. Supplies, tools, and equipment
Hair tools and products, cleaning supplies, cameras, ring lights, laptops, software, and work boots that are required safety gear. Bigger purchases may be depreciated or expensed under special rules.
5. Software and subscriptions
Bookkeeping apps, scheduling tools, design programs, website hosting, cloud storage, and professional memberships.
6. Advertising and marketing
Business cards, paid social ads, website costs, flyers, promo products, and booth fees at events.
7. Booth rent, coworking, or office space
Stylists, barbers, nail techs, and lash artists who rent a chair or suite: that rent is a business expense.
8. Business insurance
General liability, professional liability, and commercial auto coverage for your business.
9. Professional fees
Tax preparation for your business return, bookkeeping, legal fees, and licensing fees.
10. Education and training
Courses and certifications that maintain or improve skills in your current business. Training for a brand-new career generally doesn't qualify.
11. Travel and meals
Overnight business travel (airfare, lodging, a portion of meals) can be deductible. Business meals are generally 50% deductible when there's a clear business purpose. Keep the receipt and note who you met with and why.
12. Contract labor
Paid someone to help? That's deductible. Remember, for payments made in 2026, you'll generally need to send a Form 1099-NEC if you paid an individual contractor $2,000 or more for business services (up from $600). Get a W-9 up front.
13. Bank and payment processing fees
Merchant fees from Square, Stripe, PayPal, and similar apps, plus business account fees and business loan interest.
14. Startup costs
Getting a new business off the ground? Many startup costs can be partly deducted in your first year, with the rest spread over time.
Deductions That Aren't on Schedule C (But Still Help)
- Half of your self-employment tax. Taken as an adjustment on Form 1040.
- Self-employed health insurance. If you're not eligible for an employer-subsidized plan (including through a spouse), you may be able to deduct premiums for yourself and your family, generally figured on Form 7206.
- Retirement contributions. SEP IRA, SIMPLE IRA, or solo 401(k).
- Qualified business income (QBI) deduction. Many eligible owners may deduct up to 20% of qualified business income, with limits.
"Write-Offs" That Usually Get People in Trouble
- Personal meals, groceries, or family vacations
- Clothing you could wear outside of work (yes, even if it's cute and you wore it on a TikTok)
- 100% of a car or phone that's also used personally
- Gym memberships (generally personal)
- Fines and penalties
- Anything you can't back up with a record
If the IRS questions an expense, "My cousin said I could" isn't documentation.
Recordkeeping Made Simple
The IRS expects you to keep records that support your income and expenses. Here's my no-stress system:
- Separate bank account and card for business only
- Snap a photo of every receipt and save it to a folder by month
- Use a mileage app or a simple notebook in the car
- Do a 15-minute money check-in every week to label transactions
- Keep records for at least three years after you file (longer in some situations)
A Word on 1099-K and Payment Apps
For 2026, payment apps and online marketplaces generally only send a Form 1099-K if you receive more than $20,000 and more than 200 transactions. That means a lot of small business owners won't get a 1099-K at all. You still have to report the income. Good records protect you either way.
Write-Offs by Industry (Quick Ideas)
Every business is different, but here are deductions I often see people forget:
- Beauty pros (stylists, barbers, nail and lash techs): booth or suite rent, products used on clients, tools, booking software, continuing education, liability insurance
- Rideshare and delivery drivers: business miles (including miles between rides or deliveries, per your records), phone mount and charger, the business share of your phone plan, tolls and parking for business trips
- Content creators: cameras, lighting, editing software, the business share of internet, props used only for content, and platform fees
- Real estate agents: MLS and association dues, marketing, signage, business mileage to showings, and licensing fees
- Cleaners and handypeople: supplies, tools, equipment, and vehicle costs
If you're not sure whether something counts, keep the receipt and ask. It's easier to leave a deduction off than to recreate a receipt two years later.
Frequently Asked Questions
What can I write off as a 1099 independent contractor?
Ordinary and necessary business expenses, such as business mileage or vehicle costs, a qualifying home office, the business share of your phone and internet, supplies, software, advertising, insurance, professional fees, contract labor, and business travel.
What is the 2026 mileage rate for self-employed people?
72.5 cents per mile for business driving from January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31, 2026.
Can I deduct my phone bill as a 1099 worker?
You can generally deduct the business-use percentage of your phone and internet bills. Keep a reasonable basis for that percentage.
Do I need receipts for every deduction?
You need records that support your expenses: receipts, invoices, bank or card statements, and logs (like mileage). Without records, a deduction can be disallowed.
Do I have to report 1099 income if I didn't get a form?
Yes. All business income is taxable, whether or not you receive a Form 1099-NEC or 1099-K.
Let's Find Every Deduction You've Earned
You work hard for your money. Let's make sure you keep as much of it as the law allows. Book at virginiaharrisenterprise.com or call 770-375-0353.
Notes & Sources
- Ordinary and necessary; personal expenses not deductible; categories: IRS Instructions for Schedule C (Form 1040); IRS FAQs "Income & expenses."
- 2026 mileage rates: IRS Standard Mileage Rates page (reviewed July 28, 2026).
- 1099-NEC $2,000 (2026 payments): IRS "Am I required to file a Form 1099…"; 1099-K $20,000/200: IR-2025-107.
- Self-employed health insurance deduction: IRS Instructions for Form 7206. QBI: IRS QBI page.
- 50% business meals and home-office simplified method are long-standing IRS rules (Pub. 463; Pub. 587).