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.
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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.
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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.
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Property managers can deduct every mile driven to inspect properties, meet tenants, handle maintenance calls, and visit suppliers. At 70 cents per mile in 2026, a property manager driving 12,000 business miles deducts $8,400. Track from your first property visit to your last stop using MileIQ or Everlance.
A property manager driving 20,000 business miles/year for property inspections and tenant meetings deducts $13,400 (20,000 x $0.67), saving $4,958 at 37%.
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DoorDash drivers can deduct the business-use percentage of their phone and data plan (typically 50–80%), insulated delivery bags ($30–$150 each), phone mounts, car chargers, and any equipment used exclusively for deliveries. A driver spending $1,200/year on their phone plan and using it 70% for DoorDash deducts $840. Insulated bags are 100% deductible.
A DoorDash driver deducting 75% of a $1,200 phone plan ($900), $150 in insulated bags, $80 in phone mounts, and $60 in car chargers saves $441 at 37%.
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DoorDash drivers pay self-employment tax (15.3%) on net earnings and can deduct 50% of SE tax on their personal return — worth $1,500–$3,000 per year for a full-time driver. Also deduct the QBI deduction (20% of net income) if income is below the threshold. Pay quarterly estimated taxes to avoid underpayment penalties — use the 1040-ES worksheet.
A DoorDash driver with $35,000 net profit pays $4,945 in SE tax and deducts $2,473 (50% of SE tax) on Form 1040, saving $915 at 37%.
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Real estate agents can deduct every mile driven for business: showing properties, meeting clients, attending closings, visiting inspections, and driving to the office. At 70 cents per mile in 2026, an agent driving 20,000 business miles deducts $14,000. Use MileIQ or Everlance to track mileage automatically. The standard mileage rate beats actual expenses for most agents.
A real estate agent driving 25,000 business miles/year for showings, listings, and client meetings deducts $16,750 (25,000 x $0.67), saving $6,198 at 37%.
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The QBI deduction gives freelancers a 23% discount on all net business income starting 2026 — most miss it.
A Solo 401(k) can shelter up to ~$70,000/year from taxes in 2026 — far more than a traditional IRA.
Vehicle deductions require a mileage log — without it, the IRS will disallow the entire deduction.
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