Side Hustle Tax Write-Off Tool

Side Hustle Tax Write-Off Tool (USA)

If you earn income from a side hustle (self-employment activity) in the U.S., you can generally deduct ordinary and necessary business expenses. This reduces your taxable income and self-employment tax.

This tool helps you identify potential tax write-offs based on common side hustle expenses. Select the expenses that apply to your side hustle to generate a list of potential deductions.

Keep detailed records (receipts, invoices, logs) for all business expenses. Consult with a qualified tax professional for advice specific to your side hustle and situation.

Home/Office Tech/Supplies Marketing/Professional Travel/Car/Meals Other Common

Home & Office Expenses

Home Office Expenses Deduct a portion of home expenses (rent, mortgage interest, utilities, insurance, repairs) if using a space exclusively and regularly for business (specific rules apply).

Rent or Lease Payments (Separate Office) If you rent a separate office space or workspace outside your home.

Utilities (Separate Office) Electricity, gas, water, internet, phone for a separate business location.

Office Supplies Pens, paper, ink, stationery, postage, etc.

Technology & Supplies

Computer & Software Cost of computers, laptops, tablets, and software used for your side hustle (may need to be depreciated if significant asset).

Business Phone & Internet Deduct the business percentage of your phone and internet bills.

Business Subscriptions & Services Cloud storage, online tools, membership sites, professional publications related to your side hustle.

Materials & Supplies (for Products) Raw materials, components, packaging used to create products you sell.

Marketing & Professional

Advertising & Marketing Website costs, online ads, social media ads, business cards, flyers, promotional materials.

Professional Fees Payments to accountants, tax preparers, lawyers, consultants for your side hustle.

Business Insurance Premiums Professional liability (E&O), general liability, etc. (Self-employed health insurance is a separate deduction).

Business Education & Training Costs for courses, workshops, conferences to improve skills related to your *existing* side hustle.

Travel, Car, & Meals

Business Travel Expenses Costs (flights, lodging, transportation) for business trips away from your tax home.

Business Car Use Deductible using the standard mileage rate or actual expenses (gas, repairs, insurance) based on business use percentage. Requires a mileage log.

Business Meals Meals with clients or business contacts where business is discussed. Generally only 50% deductible. Keep documentation.

Other Common Expenses

Business Bank Fees Fees for a dedicated business bank account (highly recommended).

Self-Employed Health Insurance Deduction Premiums paid for health insurance if you are self-employed and not eligible for employer-sponsored coverage elsewhere (deducted on Form 1040, not Schedule C business expense).

Retirement Plan Contributions (Self-Employed Plans) Contributions to plans like SEP IRA or Solo 401(k) are generally deductible (deducted on Form 1040, not Schedule C business expense).

Platform or Marketplace Fees Fees charged by platforms like Etsy, Fiverr, Upwork, etc., for selling goods or services.

Cost of Goods Sold (COGS) If you sell products, the direct costs associated with producing or purchasing those products (materials, inventory costs) are deducted as Cost of Goods Sold. Requires inventory tracking.

Side Hustle Tax Write-Off Checklist

Potential federal tax write-offs (deductions) for your side hustle identified based on the expenses you selected.

Keep detailed records for all deductible expenses. Consult a tax professional for specific advice.

Potential Deductions:

Select expenses above and click "Generate Potential Write-Off List".