How to Write Off Everyday Expenses and Save on Taxes 

Running a business often means wearing multiple hats. Between keeping clients happy and managing operations, taxes might feel like an afterthought. Lucky for you, learning how to write off everyday expenses means many of the costs you’re already paying for can legally reduce your tax bill. Think of it as turning everyday spending into smart tax planning.

Imagine Sarah, a contractor who discovered that by deducting a portion of her home internet, meals with clients, and her business mileage, she saved hundreds, even thousands, at tax time. Those savings helped her upgrade her tools and grow her business. This blog will show you exactly how you can do the same. 

What Does “Write Off” Really Mean? 

First things first: A write off, or tax deduction, reduces your taxable income—the amount the IRS uses to calculate what you owe. Lower taxable income means a smaller tax bill. 
This is different from a tax credit, which cuts your taxes dollar for dollar. 

For many business owners and contractors, write offs are foregone opportunities. Learning how to track and claim your expenses is essential to maximizing your return. 

Who Can Take Everyday Write Offs 

Not everyone qualifies for the same set of deductions. 

• Business owners and self-employed professionals have the widest range of write offs. The IRS allows you to deduct expenses that are “ordinary and necessary” to run your business. 

• Employees on W-2 income have fewer opportunities since most unreimbursed job expenses are no longer deductible 

So, if you’re self-employed, a contractor, or running a side hustle, everyday items from your phone bill to your work travel could add up to big tax savings, if you track and document them. 

Everyday Expenses You Can Write Off 

Here are the most common write offs business owners like you can often claim and tips on how to keep it clean with the IRS: 

Home Office Deduction 

If you have a dedicated space at home used exclusively for business, you can deduct a portion of: 

• Rent or mortgage interest 

• Utilities  

• Insurance on your home 

There are two ways to calculate the deduction: 

• Simplified method: $5 per square foot, up to 300 sq. ft. (max $1,500) 

• Regular method: Deduct the pro-rata percentage of expenses based on square footage used compared to total square footage of the residence 

Technology and Supplies 

As it relates to electronics and software, you can deduct the cost of: 

• Computers and tablets  

• Cell phone plans (only the business-use percentage) 

• Software subscriptions, apps, office supplies 

For example, if your phone is used 70 percent for business, you can deduct 70 percent of the cost and service. 

Meals With a Business Purpose 

Networking lunches, client dinners, or team meetings on strategy can be deductible, but typically only 50%. Always document who you met, where, when, and why. 

Travel and Vehicle Expenses 

Excluding your daily commute, business travel (flights, hotels, rental cars) can be written off, including expenses related to reasonable tips and baggage fees. 

To deduct vehicle costs, there are two methods available to calculate deductions: 

• Standard mileage method: Multiply business miles driven by the IRS rate (70 cents/mile in 2025). 

• Actual expense method: Deduct business-use percentage of fuel, repairs, insurance, and depreciation. 

Marketing and Online Presence 

Your marketing costs help grow your business, so they usually qualify. This includes: 

• Website hosting and design 

• Paid advertising and SEO services 

• Business cards and promotional materials 

Best Practices for Write-Offs 

The value of a write off only holds if you can prove it. That’s why documentation is so important. The IRS expects clear records, and strong bookkeeping habits will save you from unnecessary stress down the road. A good practice is to save every receipt and invoice related to business purchases. Keep a mileage log if you drive for work, and always note the business purpose of each expense. Bookkeeping software can help by automatically categorizing transactions, but even simple consistent tracking can make a big difference. 

Mistakes to Avoid 

• Mixing business and personal spending. Always keep accounts separate. 

• Overclaiming. Only deduct the business portion of mixed-use items like phones or cars. 

• Ignoring limits. For example, meals are generally capped at 50 percent deductibility. 

Write offs don’t just reduce your tax bill, they’re a tool to help you keep more of your earnings and reinvest them in your business. With good tracking and documentation, everyday expenses can turn into tax saving opportunities. 

If you’re unsure whether you’re claiming all possible write offs, consider consulting a tax professional who knows the ins and outs of business expenses. We can help you find opportunities you might miss. Contact us.

FAQs 

Can I write off my cell phone bill? 
Yes, but only the portion used for business. For example, if 70 percent of your phone use is for work, you can deduct 70 percent of the cost. 

What percentage of meals can I deduct? 
Typically 50 percent, as long as the meal has a clear business purpose. Be sure to document the details. 

Can I deduct my daily commute? 
No, commuting to and from your main place of business is not deductible. However, travel to client sites or temporary work locations may qualify. 

Are clothes deductible for business? 
In most cases, no. Everyday clothing is not deductible even if you wear it to work. However, uniforms or protective gear required for your job usually qualify. 

What about personal trips mixed with business? 
If you combine a personal vacation with business travel, you can deduct the portion related directly to business. Keeping detailed records will help you separate the two.