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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DoorDash drivers can deduct 70 cents per mile for every business mile driven in 2026 — from the moment you accept an order to the moment you complete the delivery. A DoorDash driver completing 20,000 miles per year deducts $14,000, saving $5,180 in taxes at 37%. Use Stride or Everlance to track mileage automatically from the first pickup to the last drop-off.
A DoorDash driver driving 25,000 business miles/year deducts $16,750 (25,000 x $0.67), saving $6,198 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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YouTubers can deduct all camera equipment, lighting, microphones, tripods, and production gear used for their channel. A Sony A7 IV ($3,500), Rode microphone ($400), and Elgato lighting kit ($200) are all deductible under Section 179 in the year purchased. Equipment used for both personal and business use must be allocated by business-use percentage.
A YouTuber buying a $3,200 Sony camera, $1,500 lens, $600 microphone, $800 lighting kit, and $400 in accessories deducts the full $6,500 in year one, saving $2,405 at 37%.
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Photographers can deduct all camera equipment under Section 179 in the year purchased: camera bodies, lenses, flashes, tripods, drones, and lighting equipment. A photographer purchasing a $5,000 camera body, $3,000 lens, and $2,000 lighting kit deducts the full $10,000 in year one. Equipment used for both personal and business purposes must be allocated by business-use percentage.
A photographer buying a $4,500 Sony A7 IV, $2,800 lens, $1,200 lighting kit, $600 tripod, and $400 in accessories deducts the full $9,500 in year one, saving $3,515 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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