Business Expense Calculator

Add up every 2026 write-off — mileage, phone, internet, home office, gear, fees — and see the federal, SE, and state tax each dollar saves.

Self-employed write-offs cut three taxes at once, so a dollar of expense is often worth 35–45 cents back. Enter your real categories to size your Schedule C deduction total before you file.

Your 2026 business expenses

Add every category you actually spend on. Each dollar of legitimate business expense cuts self-employment tax, federal income tax, and state tax at the same time — which is why write-offs are worth far more to a 1099 worker than to an employee. Nothing leaves your browser.

Total deductible expenses
$12,165
Tax you avoid
$5,003
Value per $1 deducted
41.1%

Expense breakdown

Business mileage (9,000 mi × $0.70)$6,300
Phone (60% business use)$720
Internet (35% business use)$315
Supplies & consumables$600
Equipment & gear$1,400
Software & subscriptions$480
Platform / bank / merchant fees$750
Business insurance$500
Home office (120 sqft × $5)$600
Business meals (50% limit)$200
Training & education$300
Total write-offs$12,165

Where the savings come from

Self-employment tax saved (15.3%)$1,719
Federal income tax saved (22%)$2,676
State tax saved (5%)$608
Total tax saved$5,003

Expenses must be ordinary and necessary for your business, and you need a record — receipt, bank line, or mileage log. Commuting to a regular workplace, personal meals, and clothing you could wear anywhere do not qualify.

Frequently asked questions

What counts as a deductible business expense for a 1099 worker?
Any cost that is ordinary and necessary for your work: mileage or actual vehicle costs, business use of your phone and internet, home office, tools and gear, software, supplies, platform and payment fees, insurance, and professional services.
How much tax does a business expense actually save?
Every deductible dollar cuts income tax, the 15.3% self-employment tax (on roughly 92.35% of profit), and state tax, so most gig workers save about 35–45 cents per dollar deducted.
Can I deduct mileage and car expenses at the same time?
No. For each vehicle you choose either the standard mileage rate ($0.70 per business mile in 2026) or actual expenses — not both. Tolls and parking are deductible under either method.
Do I need receipts for every expense?
Keep records for everything you claim. Receipts, bank and card statements, app payout reports, and a contemporaneous mileage log are what satisfy an IRS review.
Can I deduct expenses if my business lost money?
Yes. Expenses can exceed income and create a Schedule C loss, which generally offsets other income on your Form 1040, as long as the activity is a genuine business run for profit.
Where do business expenses go on my tax return?
In Part II of Schedule C, with vehicle detail in Part IV and home office on Form 8829 or the simplified method worksheet.

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