Can I deduct my everyday jeans and boots?

Only clothing that is required for the work and unsuitable for ordinary wear — steel-toe boots and branded uniforms usually qualify, plain jeans do not.

Are materials supplies or cost of goods sold?

It depends on how your business accounts for inventory. Many contractors report job materials in supplies; others carry them through cost of goods sold. Be consistent.

Is driving to the job site deductible?

Travel between job sites and from a home office to a site is generally deductible; commuting to one fixed workplace is not.

Contractor Tax Deductions: Tools, Trucks, Materials & Permits

Trades have more deductible categories than almost any other self-employed group: vehicles, tools, materials, subcontractors, licenses, and insurance. The risk is not missing deductions so much as failing to document a large number of them.

Deduction checklist

Deductible expenses and their Schedule C lines for Contractors and trades
Expense	Schedule C line	What to keep in mind
Materials and job supplies	Line 22 — Supplies (or cost of goods sold)	Keep per-job receipts so you can show which job they belonged to.
Hand and power tools	Line 22 or Line 13	Small tools are usually supplies; expensive equipment may be depreciated or expensed under Section 179.
Work truck miles or actual costs	Line 9 — Car and truck expenses	A truck used only for work can be 100% business; commuting to a regular office is not deductible.
Subcontractor payments	Line 11 — Contract labor	Issue 1099s where required and keep signed agreements.
Equipment and dumpster rental	Line 20a/20b — Rent or lease	Rental invoices per job.
Permits and licensing fees	Line 23 — Taxes and licenses	Includes trade licenses and renewals.
Liability and tools insurance	Line 15 — Insurance	Business policies only; health insurance is handled separately.
Safety gear, boots, branded workwear	Line 22 — Supplies	Deductible when required for the work and not suitable for everyday wear.
Job-site fuel for generators and equipment	Line 27a — Other expenses	Keep separate from vehicle fuel if you use the standard mileage rate.

Expense

Schedule C line

What to keep in mind

Materials and job supplies

Line 22 — Supplies (or cost of goods sold)

Keep per-job receipts so you can show which job they belonged to.

Hand and power tools

Line 22 or Line 13

Small tools are usually supplies; expensive equipment may be depreciated or expensed under Section 179.

Work truck miles or actual costs

Line 9 — Car and truck expenses

A truck used only for work can be 100% business; commuting to a regular office is not deductible.

Subcontractor payments

Line 11 — Contract labor

Issue 1099s where required and keep signed agreements.

Equipment and dumpster rental

Line 20a/20b — Rent or lease

Rental invoices per job.

Permits and licensing fees

Line 23 — Taxes and licenses

Includes trade licenses and renewals.

Liability and tools insurance

Line 15 — Insurance

Business policies only; health insurance is handled separately.

Safety gear, boots, branded workwear

Line 22 — Supplies

Deductible when required for the work and not suitable for everyday wear.

Job-site fuel for generators and equipment

Line 27a — Other expenses

Keep separate from vehicle fuel if you use the standard mileage rate.

Section 179 and big equipment

Instead of depreciating a major purchase over years, Section 179 and bonus depreciation may let you deduct much or all of the cost in the year you buy it. The rules involve annual limits and business-use tests, so confirm the treatment of a large purchase with your accountant before you rely on it.

Track expenses per job, not just per month

Per-job records tell you which work is actually profitable and make it far easier to answer questions about a specific deduction later. Tagging each receipt with the job name at capture time costs seconds and saves hours.

What the IRS expects you to keep

For every expense you deduct, you need to be able to show the date, the amount, who you paid, and the business purpose. For travel, meals, and vehicle use the rules are stricter — those are 'listed' expenses where a bank statement alone is not considered adequate proof.

A dated receipt or invoice showing the vendor and amount.
A short note on why the expense was for the business.
For mileage: date, starting point, destination, purpose, and miles driven.
Records kept for at least three years after you file (six if income was significantly under-reported).

DocuSpending stores the original photo alongside the extracted date, vendor, total, tax, and category — so every number on your return traces back to a document you can show.

Common questions

This guide is general information, not tax advice. Rules change and your situation may differ — confirm specifics with a qualified tax professional or the current IRS instructions for Schedule C.

Contractor Tax Deductions: Tools, Trucks, Materials & Permits

Deduction checklist

Section 179 and big equipment

Track expenses per job, not just per month

What the IRS expects you to keep

Common questions

Let DocuSpending sort these receipts for you

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Guides for other trades