And it lets you write off a chunk of your living expenses. It’s a powerful tax break exclusively for the self-employed. But for lots of freelancers, home is also where the work is.Įnter the home office deduction. 🧾Where to claim it: Schedule C, Line 30 and Form 8829 So keep track of your meter time while you’re out on the job! 🏠 3. Parking tickets don't count as a write-off. You can only claim your parking if you are the person footing the bill.

If your client reimburses you, it isn’t a write-off. (Even if you tack a personal errand on after your work stop, you can still write off the full amount.) Can you write off parking fees if you get reimbursed? It’s pretty hard to park somewhere partially for work and partially not for work. There’s no need to deal with a business-use percentage. That’s because work-related parking fees are 100% tax-deductible. But this write-off really belongs in its own category. You might think of parking as a car-related expense. 🧾Where to claim it: Schedule C, Box 27a (“Other expenses”)

That’s how the math works out to give you the biggest savings. 🛣️ If you drive a moderate amount for work (20,000 miles): Use standard mileage.What's the best way to write off your car expenses? It’s $0.585 for the first half of the year (January to June), and $0.625 for the second half (July to December). There’s usually one rate, but for 2022, you’ve got two. 🧮 Multiply that by a standard mileage rate provided by the IRS.📝 Track the number of miles you drove for business purposes.If your car use is 60% work-related, you’ll be able to write off 60% of what you’re spending on all the expenses above.ĭeducting car expenses using the standard mileage method The amount you can claim is based on how much you drive specifically for work, or your “business-use percentage.” When you use this method, you'll be able to deduct part of what you actually spend on your car (depending on how much you're driving it for business rather than personal use). But for now, here's a quick breakdown.ĭeducting car expenses using the actual expenses method See how the two methods compare in our guide to actual expenses vs. You’ll have to pick one of them - you can’t use both. There are two ways to claim your car-related costs: If you ever drive for work, you can write off your car expenses. 🧾 Where to claim it: Schedule C, Box 9 (“Car and truck expenses”) and Form 4562 💸 Good for lowering: Your self-employment taxes

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