Tax guide for consultants

Tax deductions for consultants

The write-offs independent consultants most often claim, and how the IRS treats travel and client meals.

Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides

Based on IRS Publication 334, the Instructions for Schedule C, and IRS Publication 463.

Common write-offs

A cost generally has to be ordinary and necessary for your work, and if you also use something personally, only the business share counts.

Common business deductions for consultants
Expense	How it's usually handled
Business travel	Transportation and lodging when you're away overnight for work
Client meals	In most cases, 50% of the cost. Record who you met and why
Professional liability insurance	Deductible as a business insurance cost
Professional dues and licenses	Memberships and licenses you need for your practice
Legal and accounting fees	The cost of professional help for the business
Home office	$5 per square foot up to 300 square feet, or actual costs
Client gifts	Limited to $25 per person per year

Reimbursed expenses need care

If a client reimburses your travel, keep track of how it's handled. If the reimbursement is counted in your income, deduct the expense. If it isn't, don't deduct it as well.

Keep the proof as you go

Keep receipts, invoices, and bank records for everything you deduct, and log business miles as you drive them. IRS Publication 463 says you can't deduct amounts you approximate or estimate. Cadus keeps receipts, bank transactions, and mileage together, sorted into Schedule C categories.

Recordkeeping checklist

Save a receipt or invoice for every business purchase.

Log business miles as you drive them.

Separate business and personal use of shared items.

Ask a tax professional about large equipment purchases.

Free tools for this

Calculator

1099 and Self-Employment Tax Calculator

Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.

Calculator

Mileage Deduction Calculator

Estimate the standard mileage deduction for U.S. business driving, then use Cadus to keep mileage, expenses, receipts, invoices, and tax reports organized.

Template

Business Expense Log Template

Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.

Template

Receipt Tracker Template

Use this receipt tracker to see which purchases have proof, which receipts are missing, and which items still need review.

Official sources

IRS Publication 334 IRS Instructions for Schedule C IRS Publication 463

Related guides

Self-employed tax guide

Self-Employed Tax Deductions

What you can write off when you're self-employed: mileage, home office, phone, supplies, meals, insurance, and more, with the IRS rules and limits.

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Schedule C Expense Categories

Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.

Estimated tax guide

Quarterly Estimated Taxes

2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.

Consultants Deductions FAQ

Can consultants deduct meals with clients?

In most cases, 50% of the cost. Keep the receipt and note who you met and why.

How much can I deduct for client gifts?

Up to $25 per person per year.

Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.