#tax-deductions
Maximize tax deductions and reduce your tax liability legally
H.R. 8415 would raise the Section 199A qualified business income deduction from 20% to 23% — an extra $3,000 of deduction on $100,000 of QBI, worth $660 to $960 in tax depending on your bracket. Here is how the deduction works in 2026 after OBBBA made it permanent, which W-2 wage and SSTB limits still apply, and how to keep books that support the number you claim.
For 2026, gig drivers deduct 72.5 cents per mile through June and 76 cents after, claim up to $25,000 in qualified tips as an above-the-line deduction, and expense vehicles at 100% bonus depreciation — if they log miles and tips contemporaneously and keep books on the right Schedule C lines.
AI coding stacks now cost freelance developers $150–$600 a month across Copilot, Cursor, and Claude Code — and every dollar is deductible, but only the portion you can document. A practical guide to tracking per-vendor spend, splitting business from personal use, allocating tool cost by client, and trimming the bill without losing the leverage.
Noncash gifts over $500 require Form 8283 and over $5,000 require a qualified appraisal — and every single gift of $250 or more needs a contemporaneous acknowledgment letter before the return is filed.
Solo mobile detailers can hit 60-80% gross margins, but only by tracking job-level costs — consumables, water, van depreciation, and labor — categories a generic "Supplies" bucket obscures.
From 1 July 2025, the ATO's General Interest Charge and Shortfall Interest Charge are no longer tax-deductible — even on old tax debts. With GIC around 11% compounding daily, the after-tax cost of ATO debt jumped from roughly 7–8% to full sticker price. Here's how the incurred-date rule works and what to do about existing debt.
W-2 performers permanently lost the deduction for unreimbursed job expenses, and the Qualified Performing Artist deduction's $16,000 AGI cap — frozen since 1986 — excludes most working artists. Self-employed stunt performers and entertainers paid on a 1099 can still deduct 100% of training, safety gear, demo reels, agent commissions, union dues, and audition mileage on Schedule C.
The enhanced ACA premium tax credits expired January 1, 2026, restoring the 400% FPL subsidy cliff — about $60,240 for a single filer — and roughly doubling net premiums for the average subsidized enrollee. Here's how self-employed workers can use the 100% above-the-line health insurance deduction, Form 7206, HSA contributions ($4,400 individual / $8,750 family), and MAGI timing strategies to soften the hit.
A tow truck over 14,000 lbs GVWR can often be fully expensed under Section 179 the year it's placed in service — but only if the depreciation schedule starts that year. How towing companies should separate tow, impound, and lien-sale revenue, reconcile lot logs monthly, and price compliance costs into every job.
Cameo's 1099-NEC reports your gross booking price, but the platform keeps 25% — and Apple takes another 30% on iOS orders — so booking only your net deposits creates an IRS mismatch and erases a deductible fee. Here's how to record gross revenue and platform fees separately, what the 15.3% self-employment tax costs once you clear $400, and the 2026 quarterly estimated-tax dates to calendar.
The DB(k) plan under Section 414(x) let small employers bundle a 401(k) and a pension into one plan, yet almost nobody adopted it. Here's why it failed — IRS double filing fees, unchanged administrative work, weaker owner contributions — and how a DB/DC combo of a cash balance plan plus 401(k) profit-sharing can push an older owner's deductible contributions past $480,000 a year.
Starting in 2026, itemized charitable deductions only count above a 0.5%-of-AGI floor, while the new non-itemizer deduction excludes donor-advised funds. This guide shows small business owners how to respond — bunching several years of giving into one high-income year, donating appreciated stock to avoid capital gains, and using the 60%/30% AGI limits and five-year carryforward around a business sale.
