Deduct education expenses that maintain or improve skills required in your current trade or business, including courses, books, subscriptions, and professional conferences.
Spending $5,000 on courses, conferences, and books deducts the full amount, saving $1,850 at a 37% rate.
W-2 employees lost this deduction in 2018. Self-employed individuals still have full access. Includes online courses, coaching, masterminds, and professional subscriptions.
A UNK client — a licensed real estate agent — was paying $700/month for a sales coaching program and $1,800/year for CE courses required to maintain her license. She had been treating these as personal expenses. Uncle Kam documented that both qualified as ordinary and necessary business expenses under IRC Section 162: the coaching directly improved her existing skills as an agent, and the CE courses were required to maintain her professional license. The $8,400 annual deduction saved her $3,108 at her 37% rate.
Paying for courses, coaching, or certifications? These are likely deductible. Book a call to make sure you're capturing every education write-off.
Be the Next Win — Book a CallYes, if the education maintains or improves skills required in your current trade or business, or is required by your employer or by law to keep your current job. You cannot deduct education that qualifies you for a new career or meets the minimum requirements for your current job. For self-employed individuals, qualifying education is deducted on Schedule C as a business expense.
It depends. An MBA is deductible if you are already working in a business management role and the degree improves your existing skills — not if it qualifies you for a new career. The IRS looks at whether the education maintains or improves skills in your current work, not whether it is useful. Many MBA students in management roles can deduct tuition; those switching careers cannot.
The business education deduction (Schedule C) has no dollar limit and reduces both income tax and self-employment tax. The Lifetime Learning Credit is a non-refundable credit worth up to $2,000 per year but phases out at higher incomes. Self-employed individuals with qualifying education expenses almost always benefit more from the Schedule C deduction than the LLC.
Yes, if the course or coaching program maintains or improves skills in your current business. A business coach, sales training program, marketing course, or industry certification all qualify. The key test is whether the education relates to your existing work — not whether it is delivered online or in person.
Yes. Books, trade publications, professional journals, and online subscriptions (such as industry databases, software training platforms, or professional newsletters) that are ordinary and necessary for your business are fully deductible on Schedule C. Keep receipts and document the business purpose for each.
Self-employed individuals can deduct 50% of the self-employment tax they pay (the employer-equivalent portion) as an above-the-line deduction, reducing adjusted gross income.
A freelancer with $100,000 in net SE income pays $14,130 in SE tax. The 50% deduction ($7,065) saves $2,614 at a 37% rate.
This deduction is automatic — it appears on Schedule 1 of Form 1040. Ensure your tax software is calculating it correctly.
A UNK client was a freelance software developer earning $120,000 in net self-employment income. He had been filing his own taxes and had missed the SE tax deduction for two years. Uncle Kam identified the issue: the IRS allows self-employed individuals to deduct 50% of their self-employment tax as an above-the-line deduction. On $120,000 in net income, the SE tax was $16,955 — and the deduction was $8,478. At his 24% rate, this saved $2,034/year — and he recovered $4,068 by amending two prior returns.
Self-employed and filing your own taxes? A quick review might reveal deductions you've been missing for years. Book a call.
Be the Next Win — Book a CallSelf-employed individuals pay 15.3% self-employment tax (covering Social Security and Medicare) on net self-employment income. The IRS allows you to deduct 50% of the SE tax paid as an above-the-line deduction on Schedule 1 of your Form 1040. This deduction reduces your adjusted gross income and is available regardless of whether you itemize.
The deduction equals 50% of your total SE tax. For someone with $100,000 in net SE income, the SE tax is approximately $14,130, and the deduction is $7,065. At a 24% marginal rate, this saves $1,696 in income taxes — on top of the SE tax already paid.
No. The SE tax deduction is an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) regardless of whether you take the standard deduction or itemize. It is one of the most straightforward and universally available deductions for self-employed individuals.
The most effective way to reduce SE tax is to elect S-Corp status. As an S-Corp, you pay SE tax (payroll taxes) only on your reasonable salary — not on the full profit. Distributions above the salary are not subject to SE tax. For someone earning $150,000+ net, this can save $10,000–$20,000/year.
No. They are separate deductions. The SE tax deduction (50% of SE tax paid) reduces your AGI. The QBI deduction (up to 23% of qualified business income under the OBBBA) is a separate below-the-line deduction that reduces taxable income. Both are available to self-employed individuals and can be claimed simultaneously.
Deduct ordinary and necessary travel expenses when traveling away from home for business, including transportation, lodging, and 50% of meals.
A business owner spending $15,000/year on travel (flights, hotels, meals) deducts $13,500 (meals at 50%), saving $4,995 at a 37% rate.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Pass-through business owners (sole props, S-Corps, LLCs, partnerships) can deduct up to 20% of qualified business income from taxable income. This is one of the largest tax breaks available to small business owners.
A business owner with $200,000 in QBI at a 24% rate: 20% deduction = $40,000 reduction in taxable income = $9,600 in tax savings.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Deduct business vehicle expenses using the standard mileage rate or actual expenses (depreciation, gas, insurance, repairs). Section 179 and 100% bonus depreciation allow full expensing of heavy SUVs and trucks in Year 1.
Driving 20,000 business miles at 72.5¢/mile = $14,500 deduction. A $80,000 SUV over 6,000 lbs can be fully expensed under 100% bonus depreciation, saving $29,600 at 37%.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Deduct 50% of the cost of business meals where there is a genuine business discussion. The meal must not be lavish, and the business purpose must be documented.
Spending $20,000/year on business meals = $10,000 deduction, saving $3,700 at a 37% rate.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Personal trainers and fitness professionals can deduct the cost of equipment and supplies used in their business. This includes resistance bands, foam rollers, kettlebells, dumbbells, mats, stopwatches, heart rate monitors, fitness apps, and any other tools used with clients. Certification renewal fees (NASM, ACE, NSCA, ACSM) and continuing education are also fully deductible.
A personal trainer spending $2,500/year on equipment, certification renewals, and liability insurance deducts the full amount, saving $750–$1,000.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Pass-through business owners (sole props, partnerships, S-Corps, LLCs) can deduct up to 23% of qualified business income starting in 2026, permanently under the OBBBA. The deduction reduces effective tax rates significantly.
A consultant earning $200,000 in QBI deducts $46,000 (23%), saving $17,020 at a 37% rate — $2,220 more than under the old 20% rule.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
The One Big Beautiful Bill Act (OBBBA) creates a new deduction allowing workers in tip-based industries to exclude qualifying tip income from federal taxable income. This is one of the most significant new deductions for service industry workers in decades.
A restaurant server earning $20,000/year in tips at a 22% federal rate saves $4,400/year in federal income taxes under the new tip income deduction.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
The One Big Beautiful Bill Act (OBBBA) creates a new deduction allowing qualifying workers to exclude overtime pay from federal taxable income. This directly benefits hourly workers, tradespeople, nurses, and anyone earning overtime wages under the Fair Labor Standards Act.
A worker earning $15,000/year in overtime pay at a 22% federal rate saves $3,300/year in federal income taxes under the new overtime deduction.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Self-employed individuals can deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents as an above-the-line deduction.
Paying $18,000/year in family health insurance premiums deducts the full amount, saving $6,660 at a 37% rate.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
If you rent a booth, chair, or suite in a salon or barbershop, your rental fees are fully deductible as a business expense. This is typically the largest deduction for booth renters — most pay $200–$600/week in booth rent, adding up to $10,400–$31,200/year in fully deductible expenses.
A hair stylist paying $350/week in booth rent deducts $18,200/year, saving $5,460–$7,280 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
If you rent a separate studio space for your creative work, the full cost of rent, utilities, and equipment for that space is deductible. If you use a dedicated room in your home exclusively as a studio, it qualifies for the home office deduction. This applies to photography studios, podcast recording studios, video production spaces, and any other dedicated creative workspace.
A photographer renting a studio for $1,500/month deducts $18,000/year in rent, saving $5,400–$7,200 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Gig delivery drivers can deduct all supplies and equipment used in their delivery business. This includes insulated delivery bags, hot bags, cold bags, phone mounts, car chargers, power banks, flashlights, and any other gear used to complete deliveries. These are small but real deductions that add up over a year of full-time delivery work.
A DoorDash driver spending $400/year on insulated bags, phone mounts, and car accessories deducts the full amount, saving $120–$160 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
If you use your cell phone for business, you can deduct the business-use percentage of your monthly bill, data plan, and the cost of the device itself. For most self-employed professionals, this is 80–100% of the total cost.
A freelancer paying $120/month for their phone and using it 90% for business deducts $1,296/year, saving $389–$518 depending on tax bracket.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Your home internet bill is deductible to the extent it is used for business. For most self-employed professionals who work from home, this is 50–100% of the monthly cost. A dedicated business internet line is 100% deductible.
A self-employed consultant paying $80/month for internet and using it 80% for business deducts $768/year, saving $230–$307 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Deduct a portion of your home expenses (mortgage interest, rent, utilities, insurance, depreciation) based on the percentage of your home used exclusively and regularly for business.
A 200 sq ft office in a 2,000 sq ft home = 10% allocation. $30,000 in home expenses × 10% = $3,000 deduction, saving $1,110 at a 37% rate.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Any supplies you purchase and use in your business are fully deductible in the year purchased. This includes paper, pens, printer ink and toner, folders, binders, postage, envelopes, labels, staples, tape, and any other consumable materials used in your work.
A small business owner spending $1,200/year on office supplies saves $360–$480 in taxes depending on their bracket.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
If you are required to hold a professional license to practice your trade, the cost of obtaining and renewing that license is fully deductible as a business expense. This includes state bar fees for attorneys, medical license renewals, nursing licenses, contractor licenses, real estate licenses, CPA licenses, and any other required professional credentials.
A physician paying $2,500/year in state medical license fees, DEA registration, and board certification renewals saves $750–$1,000 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
All fees associated with your business bank account and payment processing are fully deductible. This includes monthly account maintenance fees, wire transfer fees, Stripe processing fees (typically 2.9% + 30¢), PayPal fees, Square fees, and any other merchant processing costs. For businesses processing significant revenue, these fees add up to thousands per year.
An ecommerce seller processing $200,000/year through Stripe pays approximately $5,830 in fees — fully deductible, saving $1,749–$2,332 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
All costs of advertising and promoting your business are fully deductible. This includes Google Ads, Facebook and Instagram ads, business cards, flyers, brochures, signage, website design and hosting, domain names, email marketing tools (Mailchimp, Klaviyo), and any other promotional expenses.
A real estate agent spending $8,000/year on Facebook ads, business cards, and listing photography deducts the full amount, saving $2,400–$3,200 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Work clothing that is required as a condition of employment and not suitable for everyday wear is fully deductible. For healthcare professionals, this includes scrubs, lab coats, surgical gowns, nursing shoes, compression socks worn for work, and any other required clinical attire. The clothing must be required by your employer or profession and not adaptable to everyday use.
A travel nurse spending $800/year on scrubs, compression socks, and nursing shoes deducts the full amount, saving $240–$320 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Healthcare professionals can deduct the cost of medical supplies and clinical equipment used in their practice. This includes stethoscopes, blood pressure cuffs, otoscopes, diagnostic tools, syringes, gloves, masks, bandages, and any other consumable or durable medical supplies used in patient care. Larger equipment qualifies for Section 179 immediate expensing.
A self-employed nurse practitioner spending $2,000/year on clinical supplies, a new stethoscope, and diagnostic tools deducts the full amount, saving $600–$800.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Professional liability insurance (malpractice insurance) premiums are fully deductible as a business expense. This applies to all licensed professionals including physicians, dentists, nurses, attorneys, financial advisors, CPAs, architects, and any other professional who carries liability coverage for their practice.
A physician paying $8,000/year in malpractice insurance premiums deducts the full amount, saving $2,400–$3,200 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Tradespeople and contractors can deduct the full cost of tools and equipment used in their business. Small tools (under $2,500) are expensed immediately. Larger equipment qualifies for Section 179 immediate expensing or 100% bonus depreciation. This includes hand tools, power tools, ladders, scaffolding, safety gear, hard hats, work boots, and any other equipment used on the job.
A general contractor spending $5,000/year on tools, safety equipment, and work gear deducts the full amount, saving $1,500–$2,000 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Protective clothing and safety equipment required for your trade or job site is fully deductible. This includes steel-toed work boots, hard hats, safety glasses, hearing protection, gloves, high-visibility vests, respirators, and any other OSHA-required or job-required safety gear. The key test: the gear must be required for the job and not suitable for everyday wear.
A contractor spending $600/year on work boots, gloves, safety glasses, and hard hats deducts the full amount, saving $180–$240 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
All professional beauty supplies and tools used in your business are fully deductible. This includes hair color and developer, shampoos and conditioners, styling products, scissors, clippers, trimmers, blow dryers, flat irons, curling irons, capes, towels, gloves, and any other supplies used on clients. Product purchased for resale to clients is also deductible as cost of goods sold.
A hair stylist spending $4,000/year on color, supplies, and tools deducts the full amount, saving $1,200–$1,600 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Photographers, videographers, and content creators can deduct the full cost of cameras, lenses, tripods, lighting equipment, microphones, audio recorders, drones, gimbals, memory cards, hard drives, and any other production equipment used in their business. Under Section 179, the full cost can be expensed in Year 1 instead of depreciated over 5 years.
A photographer purchasing a $3,500 camera body and $1,200 in lenses expenses the full $4,700 under Section 179, saving $1,410–$1,880 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Owner-operator truck drivers can deduct all costs required to maintain their CDL and comply with DOT regulations. This includes DOT physical exams, CDL renewal fees, FMCSA registration fees, IFTA fuel tax permits, drug testing fees, and any other compliance costs required to operate legally.
An owner-operator spending $1,200/year on DOT physicals, CDL renewal, and FMCSA fees deducts the full amount, saving $360–$480 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
All ordinary and necessary expenses for managing, conserving, and maintaining rental property are deductible. This includes property management fees (typically 8–12% of rent), repairs and maintenance, landscaping, snow removal, pest control, cleaning between tenants, locksmith fees, and any other costs directly related to keeping the property in rentable condition.
A landlord paying $4,800/year in property management fees on a $4,000/month rental deducts the full amount, saving $1,440–$1,920 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Real estate agents and brokers can deduct all professional membership fees and dues required to practice. This includes MLS access fees, National Association of Realtors (NAR) dues, state and local association dues, errors and omissions (E&O) insurance, and any other professional membership costs directly related to your real estate business.
A real estate agent paying $3,200/year in MLS fees, NAR dues, and E&O insurance deducts the full amount, saving $960–$1,280 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Restaurant owners can deduct all costs directly related to producing and selling food and beverages. This includes food and beverage inventory (cost of goods sold), kitchen supplies, smallwares (plates, glasses, utensils), cleaning supplies, disposable containers, napkins, and any other consumable supplies used in food service operations.
A restaurant with $200,000 in annual food costs deducts the full amount as cost of goods sold, reducing taxable income by $200,000.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Computers, laptops, tablets, monitors, keyboards, mice, external hard drives, and other hardware used in your business are fully deductible. Under Section 179, you can expense the full cost in Year 1 instead of depreciating over 5 years. For mixed business/personal use, only the business-use percentage is deductible.
A freelance software engineer purchasing a $2,500 laptop used 95% for work expenses $2,375 under Section 179, saving $713–$950 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
If you rent a coworking space, shared office, or dedicated office for your business, the full cost is deductible. This includes WeWork, Regus, local coworking memberships, and any other office rental. Monthly membership fees, day passes, and dedicated desk or private office costs all qualify.
A freelancer paying $400/month for a coworking membership deducts $4,800/year, saving $1,440–$1,920 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
All shipping and packaging costs for your ecommerce or product business are fully deductible. This includes UPS, FedEx, USPS, and DHL shipping fees, boxes, poly mailers, bubble wrap, packing tape, labels, and any other packaging materials. For Amazon FBA sellers, FBA fulfillment fees are also fully deductible.
An Amazon seller spending $12,000/year on shipping and packaging deducts the full amount, saving $3,600–$4,800 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
The cost of accounting, bookkeeping, and tax preparation for your business is fully deductible. This includes CPA fees for tax preparation and planning, bookkeeper fees, payroll service costs (Gusto, ADP, Paychex), accounting software (QuickBooks, Xero), and any other professional fees related to managing your business finances.
A self-employed consultant paying $3,500/year for CPA services, bookkeeping, and QuickBooks deducts the full amount, saving $1,050–$1,400 in taxes.
Enter your email for instant access to MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide.
Most taxpayers leave the QBI deduction unclaimed — it reduces taxable income by up to 23% starting 2026 under the OBBBA.
HSA contributions offer a triple tax advantage — deductible, tax-free growth, tax-free withdrawals.
Charitable donations of appreciated stock avoid capital gains AND generate a full fair-market-value deduction.
This write-off is commonly used by the following taxpayer profiles. Click to see all strategies for your situation.
Check any item instantly — G-Wagon, vacation, iPhone, home gym, and 70+ more.
