Here is what you should know about write offs:
1. Home Office Deduction
Got a dedicated workspace at home? You can deduct part of your rent, mortgage, utilities, and even internet costs. The IRS has two ways to calculate this: a simple “$5 per square foot” method or a more detailed method where you track actual expenses.
2. Mileage & Vehicle Expenses
If you use your car for work, you can deduct business miles or actual car expenses. The IRS standard mileage rate for 2023 is 65.5 cents per mile, but if you’ve got a lot of car-related expenses, it might be better to track those instead. If you didn’t track your miles last year, I’d recommend using the standard mileage deduction to make it easier.
3. Business Supplies & Equipment
Office supplies (printer paper, printer ink, pens, notebooks), tech gear, and tools specific to your work are all deductible. If you buy big-ticket items (like a laptop or camera), you can deduct the full cost in the year of purchase under Section 179 or depreciate it over time.
4. Travel Expenses
Business trips? Flights, hotels, meals (50% deductible), and taxis for business are all fair game. Just make sure the trip is mostly business and not a vacation with a side of work. And don’t forget to save your receipts! If you didn’t this past year just make a mental note to do that for 2025.
5. Health Insurance
If you’re self-employed, you might be able to deduct the cost of your health insurance premiums, which can significantly reduce your taxable income.
6. Retirement Contributions
Contributing to a Traditional IRA, Solo 401(k) or SEP IRA not only helps you save for the future but also reduces your taxable income for the year. Bonus points if you max out your contributions!
7. Meals, Entertainment & More
Business meals are deductible—just keep in mind that only 50% of the cost is eligible. You can also deduct professional fees, training, advertising, and part of your phone and internet bills if they’re for business. I would highly recommend keeping receipts for these moving forward so you can back up your claims if you’re ever audited.
Toria Troxel
Time Wealth Strategies
toria@timewealthstrategies.com
