If you’ve started a side hustle — whether it’s freelancing, reselling, content creation, or delivery driving — congratulations! You’re officially a small business owner.
But there’s one thing many new hustlers don’t realize: you can write off a lot of your business-related expenses to lower your tax bill.
That means you get to keep more of what you earn — legally.
In this guide, we’ll break down exactly what you can write off for a side hustle, what to avoid, and how to track your expenses easily (even if you hate math).
What Does “Write-Off” Mean?
A write-off (also called a tax deduction) is any business-related expense that reduces your taxable income.
Example:
If you earn $10,000 from your side hustle but spend $2,000 on business costs — you’ll only pay taxes on $8,000.
In short: The more legitimate expenses you claim, the less you pay in taxes.
Top Tax Deductions You Can Claim for a Side Hustle
Here’s a breakdown of what you can write off to save money this year
1. Home Office Expenses
If you work from home — blogging, freelancing, or running an Etsy shop — you can claim a portion of your home costs.
✅ Deductible items include:
Rent or mortgage interest (for the workspace portion)
Internet and Wi-Fi
Electricity and water (percentage used for business)
Office furniture, desk, or chair
Tip: The workspace must be used only for your side hustle.
2. Phone and Internet Bills
If you use your phone or internet for business — calls, emails, social media, or clients — you can deduct a portion.
✅ Example:
If 60% of your usage is business-related, deduct 60% of your phone plan.
3. Computer, Laptop, and Equipment
Any equipment you buy to run your hustle counts as a business expense.
✅ Deductible examples:
Laptop or desktop computer
Camera, microphone, or lighting (for creators)
Software like Canva, Zoom, or editing tools
Pro Tip: Keep receipts — some items can be depreciated over a few years.
4. Mileage and Vehicle Expenses
If your side hustle involves driving — deliveries, client visits, or picking up supplies — you can write off vehicle expenses.
✅ Two methods:
Standard mileage rate: 67 cents per mile (2025)
Actual expenses: Gas, maintenance, insurance, depreciation
Track mileage using apps like Everlance or MileIQ for easy records.
5. Supplies and Materials
Any product or tool directly used for your business is deductible.
✅ Examples:
Packaging or shipping materials
Printer ink and paper
Art or craft supplies
Cleaning materials (if applicable)
6. Website and Online Tools
If your side hustle runs online, these digital costs qualify too:
✅ Deductible examples:
Domain name & hosting (like SnapFinance.sit )
Premium WordPress themes
SEO tools (Ahrefs, Rank Math Pro)
Email marketing tools or CRMs
7. Education and Training
Learning to improve your hustle is a smart investment — and it’s deductible.
✅ Examples:
Online courses (e.g., digital marketing, photography)
Business books or guides
Coaching or workshops related to your niche
8. Business Travel
If you travel for business — even short trips — keep track of expenses.
✅ Includes:
Flights or gas
Hotels
Meals (50% deductible)
Taxis or ride-shares
Save receipts and note the purpose of each trip.
9. Marketing and Advertising
Promoting your business? You can write off:
Facebook or Google ads
Business cards or flyers
Sponsored social posts
Logo or brand design services
10. Professional Services
Sometimes you need professional help — and it’s deductible.
✅ Examples:
Accountant or tax preparer
Legal or consulting services
Bookkeeping or virtual assistant help
11. Bank & Payment Fees
If you use PayPal, Stripe, or a business bank account, fees and charges are deductible.
✅ Also includes:
Business loan interest
Credit card processing fees
12. Health Insurance (If Self-Employed)
If your side hustle is your main income and you pay for your own health insurance, those premiums may be deductible.
⚠️ What You Can’t Write Off
Not everything qualifies. Here’s what the IRS won’t accept:
❌ Personal groceries or clothing
❌ Entertainment or vacations
❌ Home repairs not related to your business
❌ Commuting from home to a regular job
Stick to ordinary and necessary expenses directly tied to your side hustle.
How to Track Your Expenses (The Smart Way)
Keeping good records makes tax season painless.
✅ Use tools like:
QuickBooks Self-Employed
Wave Accounting
Google Sheets
Keep digital receipts, note dates, and label what each expense was for.
Example: How Write-Offs Actually Save You Money
Description Amount Deductible
Laptop $1,000 ✅
Internet $600 (60% = $360) ✅
Ads $300 ✅
Supplies $200 ✅
Total Deductions: $1,860 —
If you earned $8,000 and deducted $1,860, you’ll only pay taxes on $6,140 — saving hundreds.
Final Thoughts: Write Off Smart, Stay Organized
Every dollar you spend on your side hustle counts — and the right deductions can make a huge difference at tax time.
Keep your receipts, stay organized, and use the write-offs you’re entitled to. It’s not just smart — it’s how real business owners protect their profits.
And remember: you don’t need a fancy accountant to start — just awareness and a bit of discipline.Side hustle
