NAICS code: 541510
For people who do not work in the development field, coding jargon and different types of programming languages can seem like gibberish. As a matter of fact, the same could be said for all freelancers – and software developers in particular – with regard to IRS rules. Learning how to file your 1099 taxes isn’t always an optimal experience.
The goal of Line is to make the process as easy as possible. Therefore, we compiled this list of write-offs developers can take advantage of during tax season. In order to save as much money as possible on your taxes, make sure you claim the deductions that apply to you on your Schedule C.
🖱️Software expenses
Write it off using: Schedule C, Box 18
If you use any tool to develop software for your clients, it is considered a write-off that you can claim on your taxes.
🖥️Tech accessories
Write it off using: Schedule C, Box 18
You should write off any additional monitors, keyboards, or other accessories you use while coding.
📚Educational books
Write it off using: Schedule C, Box 27a
Books that increase your knowledge and skills can be deducted from your tax return as an educational expense.
📜Courses & certifications
Write it off using: Schedule C, Box 27a
It is tax-deductible to take educational courses or receive certifications in order to improve your skills.
☁️Data storage
Write it off using: Schedule C, Box 18
In the case where you pay for cloud storage in order to store files for your job, it is a tax deduction.
🌐Website & hosting fees
Write it off using: Schedule C, Box 8
You can claim a full tax deduction for any fees you pay to Squarespace, Wix, GoDaddy, or another website service company.
🌐 Website & hosting fees
Write it off using: Schedule C, Box 8
Squarespace, Wix, GoDaddy, and other website service fees are fully tax-deductible.
📱Phone, laptop, accessories
Write it off using: Schedule C, Box 27a
If buy a phone or laptop and use it for work, it’s partially deductible.
📚 Educational books
Write it off using: Schedule C, Box 27a
Educational books to increase your knowledge and skills are tax write-offs.
📝 Office supplies
Write it off using: Schedule C, Box 18
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
🎓Professional development
Write it off using: Schedule C, Box 27a
Write off anything you pay for to enhance your design skills including courses, conferences, and workshops.
💬Advertising
Write it off using: Schedule C, Box 8
Print and online advertising costs for your business are considered write-offs.
🛠️Contract labor
Write it off using: Schedule C, Box 11
Write off the fees you pay to contract labor to help you complete projects.