Tax deductions for virtual assistants (2026)

Common to every self-employed service vendor

10 more that apply across professions.

• Vehicle and business mileage. Either the standard mileage rate (IRS publishes annually; 2026 rate published mid-year) or actual expenses (gas, maintenance, depreciation) prorated by business-use percentage. Keep a mileage log; the IRS audits these aggressively. (Pub 463, Schedule C line 9)
• Home office. Either the simplified method ($5/sq ft, up to 300 sq ft = $1,500 max) or actual expenses (rent/mortgage interest + utilities + repairs, prorated by office sq ft / total home sq ft). Office space must be used regularly and exclusively for business. (Pub 587, Form 8829)
• Software subscriptions. Booking platform (BookNox at $29/month qualifies), accounting (QuickBooks, FreshBooks), email (Google Workspace), creative tools (Adobe Creative Cloud), password manager, cloud storage. Fully deductible if used solely for business; prorate otherwise. (Schedule C line 22 (Supplies) or line 25 (Utilities))
• Phone and internet. Business-use percentage of cell phone and home internet plans. Pure-business phone lines or dedicated business internet circuits are fully deductible. Mixed-use phones are deductible at the documented business percentage. (Pub 535, Schedule C line 25)
• Self-employed health insurance. Health, dental, and qualified long-term-care insurance premiums for the self-employed taxpayer, spouse, and dependents. Deducted above-the-line (Schedule 1 line 17) — reduces AGI directly, even if you take the standard deduction. (Pub 535 ch. 6, Schedule 1 line 17)
• Retirement contributions. SEP-IRA: up to 25% of net SE earnings (capped per year). Solo 401(k): same employer cap PLUS employee elective deferral. Traditional IRA: $7,000 ($8,000 if 50+). These reduce AGI and have major compounding value; underused by self-employed creatives. (Pub 560, Schedule 1 line 20)
• Continuing education. Conferences, workshops, online courses, certification renewals, and professional books that maintain or improve skills in your current field. Education that qualifies you for a NEW field is not deductible. (Pub 535 ch. 11)
• Professional services. Legal fees (contract review, business formation), accounting fees (tax prep, bookkeeping), business consulting, and other professional services directly related to your business. (Schedule C line 17)
• Bank and payment processing fees. Stripe processing fees (2.9% + 30¢ per card / 1.5% ACH — BookNox vendors pay these directly to Stripe), business bank account fees, ACH transfer fees, wire fees, foreign-transaction fees. Use the free Stripe fee calculator to project annual processing cost. (Schedule C line 22)
• Business meals (50%). Meals with clients, vendor partners, or while traveling for business. Deductible at 50% (the 100% restaurant deduction expired in 2022). Document who you ate with, what you discussed, and the business purpose. Receipt required for meals over $75. (Pub 463, Schedule C line 24b)

Disclaimer

This is educational, not tax advice.

The deductions listed here are common categories that self-employed virtual assistants have historically claimed. Eligibility depends on your specific facts: how you use each item, whether the use is exclusively for business, whether you have proper records (mileage logs, receipts, written client agreements), and your business entity type (sole proprietor vs. single-member LLC vs. S-corp). Tax law changes year to year. The IRS audits service-vendor Schedule C returns at meaningfully higher rates than W-2 returns. Before you file, talk to a CPA who works with people in your profession.