Contractor expenses1/15/2024 ![]() ![]() ![]() *** Only the business-use percentage of these expenses is deductible. Telephone - Examples: Mobile phone, business land line. Salaries and Wages - Examples: Payments to an assistant or employees paint for a painting job), some computer and software costs (i.e. Office, Supplies and Computer Expenses - Examples: Stationary, office supplies, supplies purchased to perform a job (i.e. Please contact a professional for more clarification and to determine if your situation applies *** Vehicle Expenses - Examples: Fuel, repairs and maintenance (oil changes, repairs), parking, insurance, depreciation (if owned), lease payments (if not owned), tolls. Meals and Entertainment - Examples: 50% of meals and entertainment expenses incurred for business purposes (meetings with prospects or clients) are deductible Please contact a professional for more clarification and to determine if your situation applies.ĭelivery, Freight, Postage - Examples: Shipping, postage and express costs Home Office Expenses - Examples: Utilities, mortgage interest (if owned), rent (it not owned), repairs and maintenance, property taxes, insurance. Depending on your situation, there is a very good chance that you can use these expenses to reduce your income and business taxes:Īdvertising and Promotions - Examples: Online/Print ads, business cards, finder's feesĭues, Subscriptions, Licenses, Memberships - Examples: If you're in an industry in which you must pay professional dues or licensing costs (in order to maintain your membership), these are deductible This is a question we hear almost daily and below is a summary of common expenses with examples that business owners and independent contractors should keep track of. When new business owners, freelancers and independent contractors understand this concept, the first question that always comes to them is: "What expenses can I deduct?" By tracking your business expenses throughout the year, you are able to apply those business expenses against your income and reduce it, thereby by reducing your income taxes. ![]() You see, your taxes are based on your net income. As a freelancer and independent contractor you are eligible to deduct business expenses against your income. ![]()
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