Universal Deductions — Every Side Hustler
These deductions apply regardless of your hustle type. If you're self-employed, you're eligible. Check each box that applies to your situation.
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Home Office
Space used regularly & exclusively for business. Simplified: $5/sq ft up to 300 sq ft ($1,500 max)
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Phone & Internet
Business-use percentage of your monthly bill — track it carefully
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Bank Fees & Payment Processing
Business account fees, Stripe/PayPal fees, wire transfer fees
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Business Courses & Books
Education that maintains or improves skills in your current business
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Professional Subscriptions & Software
Accounting software, project management tools, industry subscriptions
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Health Insurance Premiums
100% deductible if not eligible for employer coverage (yours or spouse's)
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SEP-IRA / Solo 401(k) Contributions
Up to $70,000 for 2025 — reduces taxable income dollar-for-dollar
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Half of Self-Employment Tax
Deduct 50% of your SE tax as an above-the-line income adjustment on Form 1040
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Business Bank Account Fees
Monthly maintenance fees, overdraft fees, wire transfer fees on business accounts
Deductions by Hustle Type
Find your hustle below. Each section lists deductions specific to that income type — in addition to the universal ones above.
Gig Driving
Delivery Drivers
DoorDash · Uber Eats · Grubhub · Instacart · Amazon Flex
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Mileage — 70¢ per mile (2025 IRS rate)
Track every mile from your first pickup to your last drop. Use an app like Everlance, MileIQ, or Gridwise. This is typically the #1 deduction for delivery drivers.
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Insulated Bags & Delivery Equipment
Hot bags, pizza bags, coolers — anything purchased specifically for deliveries
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Phone Mount
Dashboard or vent mount used for navigation while delivering
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Car Phone Charger
Chargers used to keep your phone running during delivery shifts
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Parking Fees
Paid parking during deliveries — keep receipts or screenshot parking app records
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Tolls
All tolls paid while on delivery — deductible even if using standard mileage rate
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Data Plan (Business %)
The portion of your data plan used for navigation and platform apps while working
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Vehicle Maintenance (if tracking actual costs)
Only if you use the actual expense method instead of standard mileage. Can't use both.
Gig Driving
Rideshare Drivers
Uber · Lyft
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All Delivery Driver Deductions Above
Mileage, phone mount, charger, parking, tolls, data plan — all apply
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Passenger Water & Mints
Complimentary refreshments you provide to passengers — fully deductible
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Car Cleaning Supplies
Air fresheners, interior cleaning spray, vacuuming — necessary to maintain ratings
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Dashboard Camera
Dashcam purchased for safety and dispute resolution — deductible as business equipment
Marketplace Selling
Etsy & Handmade Sellers
Etsy · Shopify · Handmade at Amazon
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Raw Materials & Supplies
Everything that goes into making your products — yarn, resin, fabric, clay, wood, etc.
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Shipping Supplies
Boxes, bubble wrap, packing tape, tissue paper, mailers, labels, packing peanuts
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Etsy Fees (Listing, Transaction, Payment Processing)
$0.20 listing fees, 6.5% transaction fees, payment processing fees — all fully deductible
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Craft Tools & Equipment
Cricut machines, sewing equipment, kilns, laser cutters — large items may need to be depreciated
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Photography Equipment
Camera, lighting, backdrops, tripod used for product photography
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Packaging & Branding Materials
Custom boxes, branded tissue paper, thank-you cards, stickers, ribbon
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Dedicated Workspace
Home office or craft room used exclusively for your Etsy business — see home office rules above
Reselling
Resellers
eBay · Poshmark · Mercari · Amazon FBA · Facebook Marketplace
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Cost of Goods Sold (COGS)
What you paid for items — thrift store finds, estate sale purchases, wholesale buys. This is often your largest deduction.
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Shipping Supplies
Boxes, poly mailers, tape, bubble wrap, labels, packing materials
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Storage Unit Fees
If renting storage exclusively for your reselling inventory, fully deductible
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Platform Fees (FBA, Final Value Fees, etc.)
eBay final value fees, Poshmark fees, Amazon FBA storage and fulfillment fees
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Mileage to Thrift Stores & Estate Sales
70¢/mile for sourcing trips — log every sourcing run with date, destination, and miles
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Listing Photography Equipment
Camera, light box, lighting, backdrops used specifically for product listings
Digital Creation
Content Creators
YouTube · TikTok · Twitch · Patreon · Substack · Instagram
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Camera & Video Equipment
Camera bodies, lenses, action cameras — deducted immediately or depreciated under Section 179
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Lighting Equipment
Ring lights, softboxes, key lights, LED panels — anything that lights your content
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Microphone & Audio Equipment
USB mics, XLR setups, audio interfaces, pop filters, boom arms
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Editing Software
Adobe Premiere, Final Cut Pro, DaVinci Resolve, Descript — subscriptions or one-time purchases
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Streaming Equipment
Capture cards, stream decks, green screens, gaming peripherals used for content
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Content Props & Costumes
Items purchased specifically for content — not general clothing, but dedicated set pieces
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Studio / Recording Space
Dedicated home studio (home office rules apply) or rented studio space by the hour/month
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Music Licenses & Sound Effects
Epidemic Sound, Artlist, Musicbed subscriptions — licensed music for your videos
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Thumbnail & Design Tools
Canva Pro, Photoshop, stock photo subscriptions used for thumbnails and graphics
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Platform Subscription Fees
Patreon fees, TikTok LIVE fees, Twitch fees — platform commissions are deductible
Service Work
Freelancers & Service Providers
Upwork · Fiverr · TaskRabbit · Toptal · 99designs · Direct clients
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Platform Service Fees — Fully Deductible
Upwork's 10–20% fee, Fiverr's 20% fee, TaskRabbit's 15% service fee. These are fully deductible business expenses — most freelancers forget this.
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Specialized Tools & Equipment
Design tablets, specialized cameras, recording gear, any equipment specific to your service
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Professional Software
Adobe Creative Cloud, Figma, GitHub, Notion, Slack — tools required for client work
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Client Gifts
Deductible up to $25 per client per year — keep the receipt and note who it was for
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Coworking Space or Dedicated Office
WeWork, Regus, or any coworking membership — fully deductible as office expense
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Professional Development & Certification
Courses, certifications, conferences that maintain or improve your skills in your current field
Pet Services
Pet Sitters & Dog Walkers
Rover · Wag · Independent
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Leashes & Handling Equipment
Leashes, harnesses, collars, slip leads used for client pets — not your own
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Waste Bags
Poop bags purchased for use on client walks — small but deductible
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Treats Used for Client Pets
Training treats or reward treats you provide to client pets during sitting/walking
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Pet First Aid Supplies
First aid kit, antiseptic wipes, bandages for emergency situations with client pets
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Mileage to/from Client Homes
70¢/mile driving to and from client homes for drop-ins, walks, and check-ins
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Business Insurance
Pet sitter liability insurance or bonding — fully deductible business expense
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Rover Platform Fees
Rover's 20% service fee on each booking is a fully deductible business expense
Short-Term Rental
Rental Hosts
Airbnb · VRBO · Hipcamp · Direct bookings
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Depreciation on Rental Portion
Depreciate the rental-use portion of your property over 27.5 years — consult a CPA for the calculation
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Repairs & Maintenance
Plumbing fixes, painting, replacing appliances — repairs to the rental space, prorated if shared
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Cleaning Supplies
Cleaning products, laundry detergent, dishwasher pods, supplies used between guest stays
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Guest Amenities
Toiletries, coffee pods, snacks, welcome baskets — anything provided for guest comfort
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Platform Fees
Airbnb's host service fee (usually 3%) is a fully deductible business expense
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Insurance
Short-term rental insurance or landlord policy — prorate based on rental-use days
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Property Management Software
Hostfully, Guesty, PriceLabs, Hospitable — subscription fees are fully deductible
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Utilities (Prorated)
Electricity, water, internet — prorate by the percentage of time the space is rented
Most Commonly Missed
Easy Wins Most Side Hustlers Leave on the Table
1
Platform Service Fees Are Deductible
Upwork, Fiverr, Rover, Etsy, eBay — the cut they take from your earnings is a business expense. Track it separately and deduct every dollar.
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Half of Your SE Tax
Self-employment tax is 15.3% — but you can deduct half of it as an above-the-line adjustment. On $40K net profit, that's a $3,060 deduction without itemizing.
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Health Insurance Premiums (100%)
If you're not covered by an employer plan, your health, dental, and vision premiums are 100% deductible — one of the biggest write-offs self-employed people overlook.
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Retirement Contributions Up to $70,000
A SEP-IRA or Solo 401(k) lets you shelter up to $70,000 of income in 2025. Every dollar contributed reduces your taxable income — and grows tax-deferred.
How to Use This Checklist
Print this page, check off every applicable deduction, then bring the completed checklist to your tax software or CPA. Here's how to make the most of it.
Step 01
Gather your records first
Pull your bank statements, platform earnings summaries (1099-K, 1099-NEC), and any receipts from the year. Most platforms let you download annual earnings summaries from your dashboard.
Step 02
Start a mileage log if you don't have one
At 70¢/mile for 2025, a mileage log is often the highest-value record you can keep. Use Everlance, MileIQ, or even a spreadsheet — date, destination, and miles for every work trip.
Step 03
What counts as a receipt
The IRS accepts digital records — screenshots, email confirmations, and PDF receipts. Use a folder in Google Drive or an app like Expensify to store everything. A bank statement alone usually isn't enough; keep the actual receipt.
Step 04
Deduct what you can prove
Only claim deductions you have records for. A good rule: if you can't explain the business purpose of an expense to an IRS auditor, don't deduct it. When in doubt, consult a CPA — their fee is also deductible.
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Frequently Asked Questions
Are platform service fees (Upwork, Fiverr, Etsy) tax deductible?
Yes — platform service fees are fully deductible business expenses. If Upwork takes 10% of your earnings, that 10% is a deductible business expense on Schedule C. The same applies to Etsy transaction fees, Fiverr's service fee, eBay final value fees, and any other marketplace commission. This is one of the most commonly overlooked deductions for gig workers.
What is the standard mileage rate for 2025?
The IRS standard mileage rate for 2025 is 70 cents per mile for business miles driven. For delivery drivers, rideshare drivers, and any side hustler who drives for work, every business mile reduces your taxable income by $0.70. Keep a log of every trip — date, destination, and miles. The app Everlance or a simple spreadsheet works well.
Can I deduct the self-employment tax I pay?
Yes — you can deduct half of your self-employment tax as an adjustment to income on your Form 1040. This reduces your adjusted gross income dollar-for-dollar. On $50,000 in net self-employment income, your SE tax is about $7,065 — so you'd deduct $3,532 without even needing to itemize.
Can self-employed side hustlers deduct health insurance premiums?
Yes, if you are not eligible for health insurance through an employer (including a spouse's employer). Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, spouses, and dependents as an above-the-line deduction on Form 1040. This applies to medical, dental, and vision coverage.
How much can I contribute to a SEP-IRA as a side hustler?
For 2025, you can contribute up to 25% of net self-employment income to a SEP-IRA, with a maximum contribution of $70,000. Contributions are fully deductible and can dramatically reduce your tax bill. A Solo 401(k) allows even higher contributions for high earners and lets you contribute as both employee and employer — it's worth exploring if your net profit exceeds $50,000/year.