What Can You Actually Write Off on Your Taxes?

What Is a Write-Off?

A write-off is a legitimate expense that reduces your taxable income. The actual tax effect depends on your marginal rate, entity type, and other facts.

But not everything qualifies, and the rules depend on whether you're a business owner or an individual.

Common Business Write-Offs

If you're self-employed or own a business, typical deductions include:

• Home office expenses (dedicated space used regularly and exclusively for business)
• Vehicle mileage or actual car expenses for business use
• Health insurance premiums (if self-employed)
• Software, tools, and equipment
• Professional development and education related to your business
• Accounting and legal fees
• Business travel, meals (50% deductible), and lodging
• Retirement contributions (SEP IRA, Solo 401(k))

Common Individual Deductions

Even without a business, you may be able to deduct:

• Mortgage interest (on your primary residence)
• State and local taxes, up to $10,000 (SALT cap)
• Charitable donations to qualified organizations
• Medical expenses exceeding 7.5% of your adjusted gross income

These only apply if you itemize instead of taking the standard deduction.

What You Can't Write Off

• Personal expenses like groceries, clothing, or commuting
• Fines and penalties
• Political contributions
• Expenses that aren't documented

The IRS draws a clear line between personal and business use. If something is mixed, only the business portion qualifies.

Keep Good Records

If you claim a deduction, you need documentation to back it up:

• Receipts and invoices
• Mileage logs
• Bank and credit card statements

Without records, a deduction won't hold up if questioned.

Bottom Line

Write-offs can help reduce taxable income when they are legitimate and well-documented.

Guessing at deductions creates risk. Knowing what qualifies supports cleaner filings and better records.