25 Tax Write-Offs for Salespeople
NAICS business codeYour NAICS business code is a six-digit string of numbers that shows the type of work your business does. NAICS stands for North American Industry Classification System. When you do your taxes, you'll enter it in Box B of your Schedule C.425120
Reviewed bySabrina Wiechart, CPASabrina is a Certified Public Accountant (CPA) with over 15 years of experience in tax preparation, planning, and S-Corp compliance. She holds a Master’s in Accounting and specializes in helping self-employed individuals make smart tax decisions. Sabrina is passionate about simplifying the S-Corp process and making sure every client keeps more of what they earn.For a salesperson, building customer relationships on behalf of the brands you work for is your bread and butter. That said, one relationship you might feel more conflicted about is with the IRS. Filing your taxes can be especially overwhelming for the newly self-employed, who are used to having taxes deducted from their paychecks by employers.
The good news: We've got a long list of leads you can turn to when tax season arrives. From office supplies to client gifts and trade show tickets, here's a list of common money-saving write-offs that outside sales reps should deduct from their taxes.
Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.
If you use a headset for hands-free calls with customers, make sure to write it off.
Computers, extra monitors, webcams and microphones you need for work are write-offs. The device is depreciated on Box 13, or expensed up front under Section 179 or the de minimis safe harbor, and only the business-use share counts.
This includes uniforms or any branded items you must wear while working.
This applies to clothing you can't reasonably wear outside of work. Everyday clothes don't qualify, even if you only wear them on the job.
Squarespace, Wix, GoDaddy, and other website service fees are fully tax-deductible.
Write off the fees you pay to contract labor to help you complete projects.
Pay any one contractor $600 or more in a year and you'll need to file a Form 1099-NEC for them.
If you use a CRM to keep track of customer calls and issues, write it off!
Gifts for clients costing up to $25 are deductible.
Software you use for invoicing, tracking expenses, creating timesheets, and so on is deductible.
If you buy a phone or laptop and use it for work, it's partially deductible — in proportion to how much you use it for business. The device itself is depreciated on Box 13 (or expensed under Section 179); your monthly service plan belongs on Box 27b, and accessories on Box 22.
Registration for trade shows and industry conferences is deductible.
Errors and omissions coverage protects you when a client claims your advice or work caused them a loss — the premiums are deductible.
Educational courses and certifications to enhance your skills are considered tax write-offs.
This covers training that maintains or improves skills for the work you already do. Courses that qualify you for a new trade or profession are not deductible.
If you drive for work ...
If you're in sales, you probably spend a lot of time on the move, meeting with clients, going to the office, and picking up office supplies, inventory, or client gifts.
Luckily, when you use your car for work you can write off car-related expenses.
Parking for a meeting downtown, or any other work trip, is tax-deductible!
A toll while driving to or from a work destination is tax-deductible!
If you buy a new car, you can write off part of the cost every year for five years.
Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.
Car insurance monthly fees, registration, even roadside assistance are partially deductible — if you use the actual expense method. The standard mileage rate already covers them.
Oil changes, repairs, and regular checkups are deductible if you use the actual expense method. Take the standard mileage rate instead and they're already baked into your per-mile deduction.
If you discuss work at a restaurant ...
Working as a sales representative involves a lot of meetings with others — clients, mentors, fellow sales reps, and other folks who might be helpful in your business, like marketers.
If you meet someone at a restaurant to chat about work-related matters, it counts as a business expense and can be deducted.
If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off — 50% of the tab.
If you leave town for work ...
Meeting an out-of-town client, attending an industry event, or heading to a sales conference?
These all count as business trips and the associated costs can be written off your taxes.
Planes, trains, and car rentals are all work-related travel costs that can be written off.
When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.
When you're traveling for work, your meals are 50% deductible — takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)
If you work from home ...
Making sales calls and working on lead generation and client development are just a few of the tasks a sales representative might do from a home office.
If you do work from home, remember to write off related deductions.
A desk, chairs, lamps, and other home office necessities are all tax write-offs. Anything over about $2,500 gets depreciated on Form 4562 instead of written off all at once.
Repairs just for your home office are 100% deductible. Repairs to the rest of your home count too, prorated by your business-use percentage on Form 8829.
Gotta keep the lights on in your home office! A portion of your electricity bill counts.
Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.
It'd be hard to work in an office without running water, huh? Your water bill counts.
You need internet to do your job! If you claim a home office, deduct it prorated on Form 8829 along with your other utilities. Internet you pay for on the road, purely for work, is 100% deductible.
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