Have you ever bought something for your business and wondered, "Can I put this on my taxes?"
Maybe you purchased supplies, paid your phone bill, bought a laptop, or used your car to visit customers.
If you own a small business or work for yourself, you may be able to use some of those expenses to lower the amount of income you pay taxes on.
But here's something many business owners don't realize: Just because you spent money doesn't automatically mean you can write it off.
Let's talk about what a tax write-off really means, which expenses may qualify, and how to keep track of them so you're better prepared when tax season comes.
First, What Is a Tax Write-Off?
A tax write-off is simply a business expense that you may be allowed to subtract from your business income when figuring out your taxes.
Let's say you own a cleaning business.
During the year, you:
Earned $40,000 from customers.
Spent $5,000 on qualifying business supplies and other expenses.
That leaves $35,000 in business profit before considering other adjustments.
You generally pay business-related income taxes based on your profit, not every dollar customers paid you.
Here's the important part: A $1,000 write-off does not mean you get $1,000 back from the IRS. It means you may be able to lower the amount of income that is taxed.
1. Business Supplies
Think about the things you regularly purchase to keep your business running.
For example:
Hairstylists: Shampoo, hair color, gloves, and styling products.
Barbers: Razor blades, disinfectants, and other supplies.
Cleaning businesses: Cleaning products, gloves, and trash bags.
Nail technicians: Nail polish, files, and other supplies.
Office businesses: Printer paper, ink, pens, and folders.
If you purchase supplies for your business, the cost may qualify as a business expense.
Keep your receipts and make sure you can explain how the items were used for your business.
2. Business Phone and Internet
Do you use your phone to answer customer calls, book appointments, or communicate with clients?
Do you use the internet to run your business?
You may be able to write off the business portion of those bills.
For example, if your phone bill is $100 per month and you reasonably determine that 60% of your phone use is for business, you may be able to count $60 per month as a business expense.
But if you use your phone for both personal and business reasons, you generally cannot write off the entire bill.
3. Business Use of Your Car
If you drive for business, some of your vehicle expenses may qualify.
Examples include:
Driving to meet customers.
Traveling between business locations.
Picking up supplies for your business.
Making deliveries to customers.
However, driving from your home to your regular workplace is generally considered commuting and is not deductible.
There are different ways to calculate business vehicle expenses, including using an IRS mileage rate or certain actual vehicle costs.
You generally cannot claim both methods for the same vehicle expenses.
Helpful tip: Keep a record of your business trips, including the date, destination, reason for the trip, and miles driven.
4. Working From Home
Do you run your business from your home?
You may qualify for a home office deduction if you use part of your home regularly and exclusively for qualifying business purposes.
For example, let's say you have a separate room that you use only for bookkeeping, preparing client documents, or managing your business.
You may qualify to deduct certain home office costs.
Depending on the method used, these may include a portion of eligible rent, utilities, and other home expenses.
But using your kitchen table for business during the day and family meals at night generally doesn't meet the exclusive-use rule.
There are special rules and exceptions, so not everyone who works from home qualifies.
5. Advertising and Marketing
Are you spending money to promote your business?
Some common advertising expenses include:
Business cards
Flyers
Paid Facebook and Instagram advertisements
Website advertising
Signs and banners
Other business promotions
For example, if you pay to advertise your salon or cleaning business on social media, the qualifying cost may be deductible.
Advertising helps customers discover your business, and keeping records of those costs can also help you during tax season.
6. Website and Business Software
Many small businesses pay for online services every month.
These might include:
Website hosting
Online appointment booking
Bookkeeping software
Business email services
Online payment services
Software subscriptions used for work
For example, if you pay a monthly fee for a website that allows customers to book appointments, that expense may qualify.
Some larger website development or software costs may need different tax treatment rather than being deducted all at once.
7. Business Rent
Do you rent a salon suite, office, storefront, or other space for your business?
Qualifying rent payments are generally deductible business expenses.
For example, if you rent a salon suite to serve your customers, the rent may qualify.
However, rent for your personal home is not automatically a business expense. A qualifying home office has separate rules.
8. Equipment and Furniture
Have you purchased equipment to help run your business?
Examples include:
Computers
Printers
Office desks and chairs
Barber chairs
Salon equipment
Cleaning equipment
Business tools
These purchases may qualify for tax deductions.
However, some equipment must be deducted over several years unless you qualify for a rule that allows you to deduct the cost sooner.
That's why it's important to keep the purchase date, receipt, and information about how the equipment is used.
9. Business Insurance
If you pay for insurance to protect your business, the qualifying cost may be deductible.
Examples include:
General business liability insurance
Professional liability insurance
Insurance covering business property
For example, a salon owner who pays for business liability insurance may be able to count those payments as business expenses.
Personal insurance and business insurance do not always follow the same tax rules.
10. Professional Services
Sometimes running a business means paying someone else to help you.
You may be able to deduct qualifying fees paid for:
Business bookkeeping
Business accounting
Business tax preparation
Legal services related to your business
Other professional business services
For example, if you hire a bookkeeper to organize your business income and expenses, the qualifying cost may be deductible.
11. Business Training and Education
Do you pay for classes or training to improve the skills you already use in your business?
Some of those costs may qualify.
For example, a hairstylist who takes an advanced styling course to improve existing professional skills may qualify to deduct the cost.
However, education that prepares you for a completely new career or meets certain minimum job requirements generally does not qualify under the same rules.
The purpose of the training matters.
12. Business Meals and Travel
Sometimes you may need to travel or meet with someone for business.
Certain business travel expenses may qualify, including eligible transportation and lodging costs.
Business meals may also qualify when they meet IRS requirements.
However, many qualifying business meals are only 50% deductible.
For example, if you spend $100 on a qualifying business meal, you may generally deduct $50, not the full $100.
Your everyday personal lunch is not deductible simply because you own a business.
Keep your receipts and record the business purpose of the expense.
What Expenses Can You NOT Write Off?
This is where some small business owners get confused.
Not everything you purchase can be claimed as a business expense.
Some examples of expenses that generally don't qualify include:
Your everyday personal groceries
Personal clothing that can be worn outside of work
Personal vacations
Regular commuting expenses
Personal entertainment
Expenses unrelated to your business
If something is used for both personal and business purposes, only the qualifying business portion may be deductible.
Remember: Buying something doesn't make it a business expense. It must meet the tax rules.
Why Keeping Receipts Matters
Imagine getting ready to file your taxes and trying to remember everything you purchased six months ago.
You know you spent money on your business, but you can't remember how much or what you purchased.
This is why keeping good records throughout the year is so important.
You can start with a simple system:
Keep digital copies of your receipts.
Track the money coming into your business.
Record your business expenses regularly.
Keep personal and business spending separate.
Review your records at least once a month.
You don't need an expensive system to get started. A spreadsheet or basic bookkeeping software can help you stay organized.
The important thing is to keep accurate records.
A Special Note for New York Small Business Owners
If you operate a business in Brooklyn, Queens, Manhattan, the Bronx, Staten Island, or elsewhere in New York State, remember that federal tax deductions are only one part of your tax responsibilities.
Depending on your business, you may also need to consider New York State and New York City taxes, sales tax requirements, and other business rules.
A business expense that qualifies for a federal deduction may not receive exactly the same treatment under every state or city tax rule.
That's why understanding your business expenses and keeping good records is so important.
Frequently Asked Questions
Can I write off my cell phone if I use it for business?
Yes, you may be able to deduct the portion of your phone bill that is used for business. Personal use generally does not qualify.
Can I write off my laptop?
If you use your laptop for business, the qualifying business portion of its cost may be deductible. The timing of the deduction depends on the tax rules that apply.
Can I write off my clothes for work?
Usually, everyday clothing is not deductible, even if you only wear it to work. Certain protective clothing or required uniforms that aren't suitable for everyday wear may qualify.
Can I write off my business expenses if I don't have an LLC?
Yes. You generally don't need an LLC to claim legitimate business expenses. Many people who work for themselves report business income and expenses on Schedule C with their personal tax returns.
What if I don't have receipts?
You should keep records that support your expenses. Bank statements and other documents may help, but they don't always show what you purchased or why it was for business.
Can I write off something I use for both business and personal reasons?
Sometimes. You may be able to deduct the qualifying business portion, but you generally cannot claim the personal portion.
Final Thoughts: Don't Leave Business Expenses Untracked
Running a small business takes hard work, time, and money.
Whether you're a hairstylist, barber, online seller, cleaning business owner, freelancer, or someone just starting a side hustle, understanding your business expenses is an important part of managing your money.
You don't need to know every tax rule. But you should understand what you're spending, why you're spending it, and how it may affect your taxes.
The goal isn't to spend more money just to get a write-off. The goal is to keep good records, understand which expenses qualify, and avoid paying more taxes than you're legally required to pay.
Need Help Understanding Your Small Business Taxes?
At VirtueWise Tax Services, we believe taxes should be explained in a way everyone can understand.
We help individuals, self-employed workers, and small business owners understand their tax responsibilities, prepare their returns, and plan ahead.
Don't wait until tax season to start organizing your business finances.
Schedule a Tax & Business Consultation with VirtueWise Tax Services today.
Website: https://www.virtuewisetaxservices.com
Phone: 631-457-2518
Disclaimer: This article provides general tax education. Not every expense qualifies for every business, and tax rules can change. Speak with a qualified tax professional about your situation.
