Business Expense Deduction Summarizer
Track and summarize your business expenses by category. See total deductions and estimated tax savings.
Enter Business Expenses
$
$
$
$
50% deductible typically
$
$
$
Accounting, legal, consulting
$
$
$
How It Works
Business expenses reduce your taxable self-employment income, saving you both:
- Self-Employment Tax: ~15.3% savings
- Income Tax: Savings at your marginal rate
Common Deductible Expenses
- Office supplies, equipment, and furniture
- Software and online subscriptions
- Professional development and education
- Marketing and advertising
- Travel, transportation, and mileage
- Business meals (50% deductible)
- Professional services (accounting, legal)
- Business insurance and licenses
Frequently Asked Questions
What expenses are deductible?
Any expense that is "ordinary and necessary" for your business. It
must be common in your industry and helpful for your business operations.
Should I keep receipts?
Yes! Keep receipts for all business expenses. The IRS may request
documentation. Digital copies are acceptable.
What about mixed-use expenses?
For expenses with both personal and business use (like a phone),
deduct only the business percentage. Keep records of how you calculated the split.
Are meals 100% deductible?
Generally, business meals are 50% deductible. Some exceptions exist
(certain employee meals, food at events). Entertainment expenses are not deductible.
What about large equipment purchases?
You may be able to deduct the full cost using Section 179 or
depreciate over time. See our Section 179 calculator for details.
When do I report these?
Report business expenses on Schedule C (Form 1040) for sole
proprietors. The net profit after expenses is subject to SE tax and income tax.