Tax · 8 min read
Contractor Tax Deductions Guide (1099 & Self-Employed)
Independent contractors pay both halves of Social Security and Medicare on net profit. Aggressive — and accurate — deduction tracking is how 1099 earners cut that bill.
Top deductions for contractors
- Vehicle and mileage for client and job-site travel
- Tools, equipment, and PPE
- Subcontractor payments (issue 1099-NEC if over $600)
- Job materials and supplies
- Phone, internet, and software used for the work
- Continuing education, licenses, and certifications
- Self-employed health insurance and retirement contributions
Recordkeeping habits that survive an audit
- Separate bank account and card for the business
- Mileage log captured the same day (app or notebook)
- Digital receipts saved with vendor, amount, and purpose
- Contracts and change orders saved with the customer file
