You're a business now — act like one
The moment retainers and project fees lands on a 1099, the IRS puts you in the same category as any small business owner. That means self-employment tax, quarterly estimated payments — and the upside: you can deduct ordinary and necessary business expenses against what you earn.
Most consultants don't think of themselves as businesses, so they don't keep business records. Between client engagements, research, and deliverables, the costs pile up quietly — and the ones that never get recorded never get deducted.
The deductions most consultants can claim
1. Home office
Consulting from a dedicated space — the classic home-office deduction.
2. Professional dues and certifications
Association memberships, credentials, and the education to keep them.
3. Client meals and travel
Working meals (50%) and client-site travel — documented with who and why.
4. Research and software
Industry reports, data tools, and productivity software.
5. Marketing
Website, ads, conference attendance, and collateral.
6. E&O insurance
Professional liability coverage consultants can't skip.
What the IRS actually wants to see
Deductions aren't denied because they weren't real — they're denied because they weren't documented. The standard: a receipt or bank record for expenses, a mileage log with business purpose, and records made close to when the expense happened. A mileage log kept as it happens is worth far more than one reconstructed in April — the IRS knows the difference.
That's the workflow DeductionDog was built around: capture receipts by photo or by scanning your email, log drives automatically, then export the year as an accountant-ready package — every item mapped to its Schedule C line.
Related videos
5 Deductions Every 1099 Worker Forgets
Video — the write-offs that slip through the cracks, and how to catch them.
Watch3 Tax Myths 1099 Workers Believe
Video — commute miles, the $600 rule, and what actually counts as income.
WatchThe 1099 Problem
Video — why gig workers overpay, and what poor records actually cost.
DeductionDog provides record-keeping software, not tax advice. Deduction eligibility depends on your specific facts — when in doubt, talk to a qualified tax professional.