Self-Employed Tax Deductions Checklist (2026 Taxes)

By Cedar & Ledger

If you freelance, run a side hustle or get 1099s, the expenses you can show often matter as much as the income. This checklist lists common business expense categories to gather for your 2026 return, with a made-up example of how totals come together.

This is general information, not tax advice. Rules depend on your situation. Check IRS guidance (for example, Schedule C instructions and Publication 334 or 535) or ask a tax professional before you file. Every dollar figure here is a made-up example.

Quick checklist

• ☐ Income records: 1099-NEC, 1099-K, platform reports and cash sales
• ☐ Supplies and materials
• ☐ Software, apps and subscriptions used for the business
• ☐ Platform, payment and selling fees
• ☐ Advertising and marketing
• ☐ Business mileage or car expenses
• ☐ Home office details, if you use part of your home only for the business
• ☐ Phone and internet, business share only
• ☐ Equipment you bought for the business
• ☐ Education or courses tied to your current work
• ☐ Professional fees (tax prep, legal) for the business
• ☐ Estimated tax payments you made

Step 1: Start with income

Gather every 1099 and every platform's yearly report. Add income that had no form, too. Most self-employment income is reportable even without a 1099.

Step 2: Total each expense category

Go through bank and card statements month by month and put each business cost in one category. Keep receipts or statements that back each one up.

Example (made-up numbers):

Step 3: Mileage or actual car costs

If you drive for the business, keep a log of date, purpose and miles. The IRS sets a standard mileage rate each year; check the current rate for 2026 rather than reusing last year's. How to Track Car Mileage for Taxes explains the log.

Step 4: Home office, only if it qualifies

Generally the space must be used regularly and only for the business. Measure the square footage and note it. The IRS has a simplified method and a regular method; a tax professional can tell you which fits.

Step 5: Personal vs. business share

Phone, internet and car costs are often mixed. Only the business share counts, and you should be able to explain how you got it.

Example (made-up numbers): $600 phone bill for the year, used about 30% for business = $180.

Step 6: Put it in one place

One folder with income records, category totals, mileage log, home office notes and estimated payments. For the full list of documents, see the Tax Prep Checklist for Side Hustlers.

Tools that help

The printable 2026 Tax Prep Organizer ($7) has a document checklist, 1099 tracker, expense category summary, mileage, home office and estimated payment pages, in US Letter and A4. To track the year as it happens, the Side Hustle Income & Expense Tracker spreadsheet totals income and expenses by category.

Common questions

Can I deduct something I use partly for personal reasons? Often only the business share. Keep notes on how you split it.

Do small purchases count? Business expenses that are ordinary and necessary for your work can count regardless of size. Keep the record.

What if I am not sure an expense qualifies? List it separately and ask a tax professional before you claim it.

Related template: Side Hustle Income & Expense Tracker. Also see: 2026 Tax Prep Organizer

See all Cedar & Ledger templates

Try the free side hustle tax set-aside calculator →

Also see: Charitable donation records taxes

Also see: Home office deduction basics