Self-Employed Expense Deduction Estimator — guide

The estimator provides a structured list of common Schedule C expense categories used by sole proprietors, freelancers, and independent contractors. You enter the amount spent in each category during the period, and optionally mark each amount (or a portion) as potentially deductible based on your own judgment.

The tool totals all amounts and shows the split between total entered spend and the portion flagged as potentially deductible. It does not determine what is or is not deductible — that belongs to you and your tax professional.

Freelancers, sole proprietors, and independent contractors preparing to file a Schedule C or equivalent self-employment return.

Self-employed individuals who want to organize annual business spending before meeting with an accountant.

Anyone wanting a clearer picture of which expense categories represent the largest part of their business overhead.

The tool presents a set of common expense categories. For each, enter the total amount spent during the period. Common categories include: home office, software and subscriptions, office supplies, professional services, advertising and marketing, business meals, travel and transportation, education and training, phone and internet (business portion), and miscellaneous.

For each category, you can mark the entered amount — or a portion of it — as potentially deductible. This allows you to apply a business-use percentage (for example, 60% of a phone bill) without permanently altering the entered total.

Total entered: sum of all amounts across all categories.

Potentially deductible total: sum of the amounts marked as potentially deductible across all categories.

The gap between the two totals represents spending flagged as personal or non-deductible.

No tax rate is applied — the tool does not estimate a tax saving or refund amount, because that depends on your marginal tax rate, other deductions, and total income.

The results panel shows a category-by-category breakdown with entered and potentially-deductible amounts side by side. A summary at the bottom shows total spending, total potentially deductible, and the gap.

Use this summary as a starting point for your accountant. Bring the exported summary to your tax appointment to speed up the review process.

A graphic designer enters 2025 expenses:

Home office (dedicated room): $720 — marked fully deductible.

Software (Adobe, Figma): $1,200 — marked fully deductible.

Phone (60% business use): $840 entered, $504 marked deductible.

Client meals (50% rule): $600 entered, $300 marked deductible.

Marketing and advertising: $1,080 — marked fully deductible.

Total entered: $4,440. Potentially deductible: $3,804. This is the summary the designer takes to their tax appointment — the accountant confirms which amounts actually qualify.

The tool does not determine deductibility. IRS rules for each category (home office, meals, vehicle, etc.) are complex and depend on your business structure and use.

Business meals are generally subject to a 50% limitation. The tool does not apply this automatically — mark the deductible portion yourself.

The tool does not account for AGI limitations, phase-outs, or SE tax calculations.

This is not a filed tax form and does not connect to any tax preparation software.

Instead of reconstructing a year's worth of expenses from bank statements, MileLedger lets you log each expense as it happens — with merchant, category, date, and optional receipt image. Your annual expense summary is ready whenever you need it.

Learn more at /features/expense-management.