Tax deductions for maintenance workers

You should report self-employment income on Schedule C, Profit or Loss from Business.
You can deduct expenses you incurred to provide your services.
You can’t deduct any expenses from a W-2 job where you earn wages.

If you are self-employed, you should keep records of the income yourself. If you did jobs for a single person or company and were paid more than $600, you may get a Form 1099-NEC, Nonemployee Compensation. If your net self-employment earnings are $400 or more, you must pay self-employment tax on the net profit from Schedule C. You may also need to make estimated payments to cover the self-employment tax and income tax associated with the income you report on Schedule C.

Possible deductions for maintenance workers

You may be able to reduce your taxes by deducting unreimbursed job-related expenses from your self-employment activity. Make sure to keep receipts to prove these expenses.

Examples of some of the items you may be able to deduct include:

Subscriptions to trade journals related to your work
Dues for trade associations or unions
Insurance premiums for protection against liability or wrongful acts
Specialized equipment or tools
Safety equipment such as steel-toed shoes or boots
The cost and upkeep of uniforms if they are required for work and aren’t suitable for everyday wear (for example, specialized coveralls, hard hat, work gloves, safety shoes, or goggles)
State or local government regulatory fees, licenses, or flat-rate occupational taxes, as long as you didn’t pay these fees for your initial certification or licensing
Business bad debts
Car and truck expenses when getting from one work site to another
Employee salaries or other forms of compensation, such as bonuses or commissions
Legal and professional fees, such as accounting or legal advice that is directly related to the operation of your business
Rental expenses for business use property, such as trailer and equipment rentals
Travel expenses for traveling away from your business home if you are required to be away from home for longer than an ordinary day's work; examples of deductible travel expenses include transportation by car, air, or bus, tolls and parking fees, lodging, and meals (with limitations)
Advertising
Tool and equipment repairs and maintenance
Supplies and incidental materials
Excise taxes and personal property taxes imposed on your business

You may be able to deduct work-related education courses or seminars if they meet certain requirements. Courses that typically meet the requirements include:

Refresher courses
Courses on current developments
Vocational courses

However, you can’t deduct courses that qualify you for a new trade or business or that help you meet the minimum education requirements of your present trade or business. For example, an electrician can’t deduct the expenses of going to general contractor school to become a contractor. You may be able to claim expenses not related to your self-employment income as an education credit.

Want more information about what you may be able to deduct? We can help. A Jackson Hewitt Tax Pro can investigate all the deductions that you may be entitled to and will help you file a complete and accurate return. Taxes can be complicated, but you are not on your own. Contact us today.