Small Business Tax Deductions Checklist for Contractors (Free PDF)
Are you sure you're catching every write-off?
Most contractors miss a few every year. Not because they don't qualify, but because nobody sorted the spending that way, or the proof wasn't kept.
Use this checklist to go down the list before you file. Each item shows the deduction and the record you need to back it up.
Download the free PDF checklist to print it or keep it on your phone.
For how each deduction works, see Contractor Tax Deductions: What You Can Write Off.
Your Truck and Vehicles
Business miles or actual costs. Pick one method: the IRS standard mileage rate, or your actual gas, tires, repairs, insurance, and depreciation. Record: a mileage log kept as you go.
Vehicle purchase. A truck or van used over 50% for work can often be written off fast. Record: the bill of sale and the GVWR from the door sticker.
Parking and tolls on job days. Record: receipts or toll statements.
Tools, Equipment, and Materials
Small tools and equipment up to $2,500 per item or invoice. Record: receipts.
Big equipment. Section 179 or bonus depreciation can often write it off in year one. Record: invoices, plus the date it was put to work.
Materials and job supplies. Pipe, wire, fittings, sod, paint. Record: supplier invoices, ideally tagged to the job.
Safety gear. Steel-toe boots, hard hats, gloves, eye protection. Record: receipts.
Your Crew and Subs
Payments to licensed subcontractors. Record: a W-9 for each sub, and the 1099-NECs you filed for anyone paid $2,000 or more in 2026.
Employee wages and payroll taxes. Record: payroll reports.
Workers' comp insurance. Record: the policy and payment records.
Office, Phone, and Software
Home office. A space used regularly and only for the business. Record: the square footage, plus your rent or mortgage interest, utilities, and insurance.
Business share of your phone. Record: phone bills and your business-use percentage.
Software and apps. QuickBooks, Jobber, Housecall Pro, ServiceTitan, scheduling tools. Record: subscription receipts.
Card processing fees. Taken out of customer payments before you see the money. Record: processor or app payout reports.
Office supplies and postage. Record: receipts.
Insurance, Licenses, and Fees
General liability and commercial auto insurance. Record: policies and payment records.
Contractor's license renewal and bond. Record: renewal notices and receipts.
Bookkeeping, tax prep, and legal fees for the business. Record: invoices.
Bank fees and interest on business loans and business credit cards. Record: statements.
Marketing
Website, hosting, and online ads. Record: invoices and ad account statements.
Truck wraps, yard signs, and business cards. Record: invoices.
Directory and lead-service fees. Record: statements.
Training
Continuing education to keep your license, or classes that sharpen a skill you already use. Record: receipts and course details.
Owner Deductions
These lower your income tax, but not your self-employment tax.
Half of your self-employment tax. Figured on your return.
Self-employed health insurance for you, your spouse, and your kids. Not for any month you could get coverage through an employer. Record: premium statements.
Retirement contributions to a SEP IRA or Solo 401(k). Record: account statements.
The QBI deduction. Up to 20% of business profit on your federal return. Figured on your return, from your bookkeeping.
What Doesn't Count
Your commute from home to the first job, unless your home is your main place of business.
Regular clothes, even if you only wear them to work.
Traffic tickets and fines.
The personal share of anything you also use for the business.
California Differences
No bonus depreciation on your California return.
Section 179 is capped at $25,000 in California.
No QBI deduction in California.
Unlicensed helpers doing licensed work can be treated as employees, not subs.
Key Takeaway: A deduction only counts if you can prove it. Go down this list, make sure each expense is in your books, and keep the record that backs it up. The deductions that save the most are decided in your bookkeeping, long before tax time.
Getting ready to file? Use our Small Business Tax Prep Checklist for Contractors to gather everything your preparer needs.
At Civita Tax Solutions, we help home service business owners save money on taxes with all-in-one accounting. We handle your bookkeeping, advisory, and tax filing. You focus on the business. We handle the finances.
Want to know which write-offs you're missing? Take our free 3-minute Contractor Write-Off Diagnostic, or book a free consultation.
