9 Tax Write-Offs for Handymans in 2026

Tools & Equipment

Schedule C Line 22 · $300 — $3,000/yr

Drills, saws, wrenches, screwdrivers, levels, stud finders, and other hand and power tools used for repair work.

Vehicle / Mileage

Schedule C Line 9 · $3,000 — $10,000/yr

Driving to client homes, hardware stores, and supply runs. Most handymen drive 8,000-15,000+ business miles per year.

Supplies & Materials

Schedule C Line 22 · $500 — $5,000/yr

Screws, nails, caulk, paint, drywall compound, plumbing parts, and other materials supplied for jobs not reimbursed by clients.

Business Insurance

Schedule C Line 15 · $500 — $2,000/yr

General liability insurance protecting against property damage and injury claims from your handyman work.

Marketing & Advertising

Schedule C Line 8 · $200 — $2,000/yr

Website, Thumbtack or Angi listings, truck lettering, business cards, and door hangers for local marketing.

Phone & Communication

Schedule C Line 25 · $500 — $1,200/yr

Business percentage of your cell phone for client calls, estimates, scheduling, and sending photos of completed work.

Vehicle Expenses

Schedule C Line 9 · $2,000 — $6,000/yr

If using the actual expense method: gas, oil changes, tires, repairs, and insurance for your work vehicle.

Licensing & Permits

Schedule C Line 23 · $50 — $500/yr

Handyman business license, city or county permits, and any trade-specific certifications required in your area.

Safety Equipment

Schedule C Line 22 · $50 — $300/yr

Safety glasses, gloves, dust masks, knee pads, and other PPE used during repair and maintenance work.

Home Office Deduction

30 (Form 8829)

If you use a dedicated space in your home regularly and exclusively for business, you can deduct it. Simplified method: $5 per square foot, up to 300 sq ft ($1,500 max). Regular method: proportionate share of rent/mortgage, utilities, insurance, and repairs.

Self-Employment Tax Deduction

Form 1040, Line 15

You can deduct the employer-equivalent portion of self-employment tax (7.65% of net earnings) as an above-the-line deduction on your Form 1040.

Health Insurance Premiums

Form 1040, Line 17

Self-employed individuals can deduct 100% of health, dental, and vision insurance premiums for themselves, their spouse, and dependents.

Retirement Contributions

Form 1040, Line 16

Contributions to a SEP-IRA (up to 25% of net earnings), Solo 401(k), or SIMPLE IRA are deductible and reduce both income tax and self-employment tax.

Qualified Business Income (QBI) Deduction

Form 1040, Line 13

Most self-employed individuals can deduct up to 20% of qualified business income under Section 199A, subject to income limits and business type.

Do handymen need a business license to deduct expenses?

You do not need a formal business license to deduct expenses. However, if your state or city requires a license, the fee is deductible. The IRS requires that your work qualifies as a trade or business — regular and continuous activity done for profit.

Can handymen deduct hardware store purchases?

Yes. Materials and supplies purchased for client jobs are deductible on Schedule C Line 22. Keep receipts and note which job each purchase was for in case of audit.

How do I track mileage as a handyman?

Use a mileage tracking app or keep a log with date, starting/ending location, business purpose, and miles driven for each trip. The IRS requires contemporaneous records, so log trips as they happen.