1099 Tax Deductions Checklist for 2026: What I Make Sure Every Self-Employed Client Claims

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When you work for yourself, nobody withholds taxes from your pay, and nobody hands you a list of what you can write off. Every tax season I meet 1099 workers who paid more than they had to. Not because they did anything wrong, but because they didn’t know an expense counted, or they never kept the record.

I’m Francisco, a tax preparer and IRS Certifying Acceptance Agent. I’ve prepared returns since 2022, and most of my clients are rideshare and delivery drivers, house cleaners, contractors, and freelancers. This is the checklist I go through with them for the 2026 tax year, the return you’ll file in early 2027.

The short version

Business expenses go on Schedule C and lower two taxes at once: income tax and the 15.3% self-employment tax.
The big ones for most 1099 workers: mileage (72.5 cents per mile through June 2026, 76 cents from July 1), app fees, your phone, supplies, and a home office.
Some of the best deductions aren’t on Schedule C at all: half of your self-employment tax, health insurance, retirement contributions, and the 20% QBI deduction.
New for 2025 through 2028: up to $25,000 of qualified tips can be deducted, if you have an SSN valid for work.
No record, no deduction. Keep a mileage log and your receipts as you go.

How Much Is a Deduction Really Worth?

A deduction doesn’t come back to you dollar for dollar. It lowers the income you’re taxed on. But for self-employed people it’s worth more than most realize, because business expenses reduce income tax and self-employment tax.

Here’s a rough example. Say you’re single, in the 12% federal bracket, and live in Utah. Every $1,000 of business expenses you can prove saves you about:

Tax	Approximate savings
Self-employment tax (15.3% on 92.35% of profit)	$141
Federal income tax (12% bracket, after the QBI deduction)	$89
Utah income tax (4.45%)	$41
Total	About $270

In the 22% bracket, it’s closer to $345. So a forgotten $3,000 in expenses can easily cost you $800 or more. These are estimates; your real numbers depend on your full return. Want to see yours? Try my free 2026 tax calculator.

Want this as a printable list? Download my free Tax Document Checklist for self-employed and 1099 workers. (Versión en español gratis.)

Part 1: Business Expenses (Schedule C)

These go on Schedule C, the form where you report your business income and expenses. The rule for all of them: the expense has to be ordinary and necessary for your work, and you can only deduct the business part.

1. Your car

Business mileage: the IRS raised the standard mileage rate in the middle of 2026. It’s 72.5 cents per mile for business driving from January 1 to June 30, and 76 cents per mile from July 1 to December 31, so your log needs dates. The other option is actual costs (gas, repairs, insurance, depreciation) times your business-use percentage. Most of the drivers I work with are better off with the standard rate.
Parking and tolls for business trips, on top of the mileage rate.
The business share of your car loan interest. Self-employed people can deduct it even when they use the standard mileage rate.
Overnight business travel: airfare, hotel, and 50% of meals.

Driving from home to a regular workplace is commuting, and it doesn’t count. Mileage is the deduction I see lost most often, so if you drive for work, read my guide to the best mileage tracker apps.

2. App fees and payment costs

Uber, Lyft, DoorDash, and Instacart fees and commissions. Uber, for example, reports the gross amount riders paid, before its fees came out, which is why your deposits were smaller. Those fees are listed in your annual tax summary, and many of them can be deducted. This one surprises a lot of first-year drivers.
Card processing fees from Square, Stripe, PayPal, or Venmo for business.
Bank fees on an account you use for your business.

3. Phone, internet, and software

Your cell phone plan, business-use percentage. If you use your phone 70% for work, deduct 70% of the bill.
Home internet, business share.
Apps and software: mileage trackers, bookkeeping apps like Hurdlr or QuickBooks, scheduling tools, your website and domain.
The phone, laptop, or tablet itself, business share.

4. Home office

If part of your home is used regularly and exclusively for your business, and it’s your main place of business (or where you regularly meet clients), you can deduct it.
Simplified method: $5 per square foot, up to 300 square feet, for a maximum of $1,500.
Regular method: a share of your rent or mortgage interest, utilities, and insurance, based on the size of the office. More paperwork, sometimes a bigger deduction.

“Exclusively” matters: a kitchen table where you also eat doesn’t qualify. If your home office is your main place of business, it can also make trips from home to clients count as business miles. Ask your preparer about your situation.

5. Supplies, tools, and equipment

Supplies you use up: cleaning products, insulated delivery bags, phone mounts, printer ink, job materials.
Tools and equipment: vacuums, pressure washers, power tools, a computer, a dash cam. With 100% bonus depreciation (made permanent for equipment bought and put into use after January 19, 2025) and Section 179, most equipment can be written off in the year you start using it. Items that cost $2,500 or less can usually be deducted right away; your preparer attaches a short election to your return.
Vehicles have special rules, so talk to a preparer before deducting a car purchase.
Uniforms and safety gear, but only if they aren’t suitable as everyday clothes.

6. Help, marketing, and professional services

Helpers and subcontractors you pay. For payments made in 2026, you only have to send a 1099-NEC to someone you paid $2,000 or more (it used to be $600). Keep records of every payment either way.
Advertising: business cards, flyers, social media ads, your website.
Tax prep and bookkeeping for your business. The part of your tax preparation fee that covers your Schedule C is a business expense.
Business insurance, licenses, and permits, like a city business license.
Training and courses that improve skills for the work you already do.
Startup costs, if your business started in 2026: up to $5,000 can be deducted right away, and the rest over 15 years.

Part 2: Deductions on Your Personal Return

These aren’t on Schedule C, but you get them because you’re self-employed. Not every program asks about them clearly, so make sure they’re on your return.

7. Half of your self-employment tax

Self-employment tax is 15.3% for Social Security and Medicare, charged on 92.35% of your net profit. For 2026, the 12.4% Social Security part stops once your combined wages and self-employment earnings reach $184,500. You get to deduct half of your self-employment tax from your income. Tax software calculates this automatically, but now you know why that line is there.

8. Self-employed health insurance

If you pay for your own health insurance, including Marketplace, dental, vision, and qualified long-term care plans, and your business made a profit, you can usually deduct the premiums for yourself, your spouse, your dependents, and children under 27. The deduction can’t be more than your business profit after subtracting half of your self-employment tax and any retirement contributions. Only the part you actually paid counts, not the part covered by a premium tax credit. And you can’t take it for any month you could have joined an employer-subsidized plan, including through your spouse’s job.

9. Retirement contributions

SEP IRA: up to about 20% of your net self-employment earnings (after subtracting half of your self-employment tax), with a 2026 maximum of $72,000. You can usually open and fund it until your tax filing deadline, including extensions.
Solo 401(k): up to $24,500 of your own contributions for 2026, plus $8,000 more if you’re 50 or older ($11,250 if you’re 60 to 63). On top of that you can add an employer contribution, within a $72,000 total for people under 50.

You lower your taxes and save for your future at the same time. Even a small SEP contribution adds up over the years.

10. The QBI deduction (up to 20%)

The qualified business income deduction lets most self-employed people deduct up to 20% of their business profit, and it’s now permanent. For 2026, the full deduction is available if your taxable income is under $201,750 (single) or $403,500 (married filing jointly). New for 2026: if you have at least $1,000 of income from a business you actively work in, the deduction is at least $400.

11. No tax on tips (2025 through 2028)

If you work in a job where people customarily tip, like rideshare and delivery driving, house cleaning, or hair styling (the IRS list has dozens of occupations), you may be able to deduct up to $25,000 of qualified tips a year. You can take it even if you use the standard deduction. The fine print:

You need a Social Security number valid for work. ITIN filers can’t claim it.
If you’re married, you have to file jointly.
It phases out above $150,000 of modified AGI ($300,000 if married filing jointly), shrinking by $100 for every $1,000 over.
If you’re self-employed, it can’t be more than your net profit from the work that earned the tips.
It lowers your income tax, not your self-employment tax.
For self-employed workers, the tips have to appear on a Form 1099-NEC, 1099-MISC, or 1099-K you received. Cash tips that aren’t on any 1099 don’t count.
Tips have to be voluntary. Automatic service charges don’t qualify.

What You Can’t Deduct

Commuting to a regular workplace.
Clothes you could wear outside of work, even if you bought them for work.
Personal meals and groceries, including lunch between deliveries.
Traffic and parking tickets.
The personal part of anything. If your phone is 60% business, the other 40% isn’t deductible.
Anything you can’t prove.

The Records the IRS Expects

A deduction is only as good as the record behind it. Keep:

A mileage log with the date, where you went, why, and the miles, kept as you go, not rebuilt in April.
Receipts. Phone photos are fine. Write a quick note about what each one was for.
Bank and card statements. A separate account for your business makes this much easier.
Your 1099s and app tax summaries.

Keep everything for at least three years after you file (longer in some situations). Prefer a spreadsheet for mileage? My Driver Mileage Log ($7) totals your deduction automatically. (En español.)

MADE BY A TAX PREPARER

Income, Expense & Tax Tracker Spreadsheet

I built this spreadsheet for freelancers and self-employed workers. Log your income and expenses, and it shows how much to set aside for taxes, what’s left to spend, your monthly and yearly totals, spending by category, and tax deadlines. Just fill in the yellow cells. Works in Excel, Google Sheets, and LibreOffice.

Get the tracker for $9 →

Live in Utah? Get the Utah version ($12). It also estimates your Utah state tax and quarterly payments. ¿En español? Plantilla para Utah en español ($12).

Your 1099 Forms in 2026: What Changed

1099-NEC: clients only have to send one if they paid you $2,000 or more in 2026, up from $600.
1099-K: apps and payment platforms send one when you have more than $20,000 in payments and more than 200 transactions.

That means fewer people will get 1099s, but it doesn’t change what you owe. You have to report all your business income, with or without a form. And every deduction on this list applies either way.

Don’t Forget Quarterly Taxes

Because nobody withholds taxes from 1099 income, the IRS expects you to pay during the year if you’ll owe $1,000 or more. Payments for 2026 are due April 15, June 15, and September 15, 2026, and January 15, 2027. If you file your return and pay in full by February 1, 2027, you can skip the January payment. Your deductions lower those payments too, which is one more reason to track them all year.

Use my free 2026 tax calculator to see how much to set aside each quarter. (En español.)

Filing With an ITIN?

Everything in Part 1 applies to you: mileage, supplies, phone, home office, all of it. The main exception on this list is the tips deduction, which requires an SSN valid for work. If you still need an ITIN, here’s my step-by-step guide to getting an ITIN in 2026.

Which Tax Software Handles This Best?

Most programs can handle a Schedule C, but some ask much better questions about expenses than others. I ran the same self-employed return through six of them. See which tax software I recommend for 1099 workers.

FAQ

What is the IRS mileage rate for 2026?

72.5 cents per business mile from January 1 to June 30, 2026, and 76 cents per business mile from July 1 to December 31, 2026. The IRS raised it mid-year, so add up your miles for each half of the year separately.

Can I take the standard deduction and still deduct business expenses?

Yes. Business expenses go on Schedule C and reduce your business profit. The standard deduction is separate, so you get both.

Can I deduct expenses if I didn’t get a 1099?

Yes. Your deductions depend on your income and expenses, not on whether you received a form. You still have to report the income, too.

Do I need a receipt for everything?

You need a record that shows what you spent, when, and why. A receipt photo, a bank statement, and a short note usually do the job. For mileage, you need a log.

What if I didn’t track anything this year?

Start today. For past months, calendars, bank statements, app summaries, and customer records can help rebuild what you spent and drove. It’s slower and never as complete as a real record, but it’s much better than guessing.

Do these deductions lower my Utah taxes too?

Yes. Utah’s income tax starts from your federal adjusted gross income, so business expenses lower your Utah tax as well.

Not sure what you can claim?

I go through this checklist with every self-employed client. If you’d rather have a pro review your expenses or prepare your return, I can help, in English or Spanish. ¿Prefieres en español? Con gusto.

See my services →

About the author: Francisco is a tax preparer and IRS Certifying Acceptance Agent who has prepared returns since 2022. He works mostly with self-employed clients, gig workers, and ITIN filers in English and Spanish.

This article is for general information only and isn’t tax advice for your specific situation. Figures are for the 2026 tax year and were checked against IRS sources in October 2026.