Can I deduct a truck I use for work?

Yes — either using the standard mileage rate ($0.70/mile) or actual expenses at your business-use percentage. Heavy vehicles (over 6,000 lbs GVWR) have higher Section 179 limits.

Are permits pulled for jobs deductible?

Yes — permit fees for jobs you complete are deductible business expenses. Keep a copy of each permit as documentation.

What if I'm paid in cash — do I still owe taxes?

Yes. All income is taxable regardless of payment method. The IRS can reconstruct income through bank deposits, client records, and third-party information. Report all cash income.

Can I deduct a home office as a contractor?

Yes, if you have a dedicated space at home for estimating, billing, and administrative work that is your principal administrative location. The space cannot be used personally.

Schedule C · Self-Employed

Tax Write-Offs for Independent Contractors

General contractors, specialty tradespeople, and subcontractors who receive 1099s are self-employed. The wide range of deductible tools, vehicle costs, materials, and licensing fees means contractors often have the highest write-offs of any profession on this list.

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Top 6 Tax Write-Offs for Independent Contractors

Tools & Equipment

100% deductible

Power tools, hand tools, measuring equipment, and specialty gear required for your trade. Tools under $2,500 can be expensed immediately; larger items use Section 179 or depreciation.

Schedule C, Line 13

Vehicle & Mileage to Job Sites

100% deductible

Miles driven from your home or shop to job sites, supply houses, and permit offices at $0.70/mile. If your first trip of the day is to a regular job site, those miles may not be deductible — consult a CPA.

Schedule C, Line 9

Materials & Supplies

100% deductible

Lumber, concrete, pipe, wire, fasteners, and other materials you purchase to complete jobs and bill through to clients. Track separately from equipment.

Schedule C, Line 22

Subcontractor Payments

100% deductible

Payments to subcontractors, specialty tradespeople, and laborers you hire for specific jobs. File 1099-NEC for any individual paid $600 or more in a year.

Schedule C, Line 11

Licensing & Bond Fees

100% deductible

State contractor license fees, license renewal costs, and surety bond premiums are 100% deductible as professional expenses.

Schedule C, Line 23

Work Clothing & Safety Gear

100% deductible

Protective equipment (hard hats, safety glasses, steel-toed boots, gloves, high-vis vests) that is not suitable for everyday wear. Standard clothing worn on the job is generally not deductible.

Schedule C, Line 22

Common Mistakes to Avoid

Deducting materials purchased speculatively (stockpiling supplies before you have jobs) — only materials for actual jobs in progress qualify.
Not filing 1099-NEC forms for subcontractors — the IRS matches these and failing to file can result in penalties.
Deducting the cost of a new truck in full without understanding the Section 179 limit for heavy vehicles, which differs from standard equipment.
Treating your general liability insurance premium as a personal expense — it's fully deductible on Line 15.

Recordkeeping Tips

Maintain a job log showing the client, job address, dates worked, and materials used — this provides the business purpose documentation for all job-related expenses.
Keep all supply house and hardware store receipts separated by job so materials can be linked to specific projects.
Log mileage every time you drive to a new job site — a mileage app with location tagging works well.
File all 1099-NEC forms for subs by January 31 each year and keep copies with your tax records.

Frequently Asked Questions

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This content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.