Can contract workers get deductions from personal bank account expenses?
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Contract workers can only deduct expenses that were used exclusively for business. Some equipment (also known as assets) purchased for your business may be depreciable, too, so you can spread out the expense deduction over the life of the asset.
You’ll need receipts and records to validate business-related expenses, and if the expense was directly related to your business, generally you can deduct the whole amount.
You may also be able to deduct a percentage of an expense used both for business and personal use. Here, you’re required to keep track of the percent of business use so you can accurately apportion the expense. Having separate bank and credit accounts for your business makes tracking these expenses even easier.
Table of Contents
FAQ
You got this—all you have to do is start!
We make filing taxes delightfully simple with our flat–rate price. Every feature included for everyone.
Start filingMore Tax Guides
FAQ
Coronavirus Pandemic News and Resources
Tax Reform 101
Tax-Related Identity Theft
Filing Your Taxes 101
For Students and New Grads
Taxes for Families
Affordable Care Act
Taxes and Your Job
Taxes for the Self-Employed
Tax Breaks for Homeowners
Health and Life Insurance
Investing and Retirement
Tax Savings Strategies
Tax Terms
IRS Tax Dates
Disaster Relief
State Taxes