25 Tax Write-Offs for Oil and Gas Contractors
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.237990
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.Is there anything cozier than a well-heated home in the winter? Probably not, but saving money on our taxes sure gives us the warm fuzzies! And as an oil and gas contractor, there’s an easy way for you to lower your tax bill, just by claiming the business expenses you run into every day.
Don’t let these savings burn — use our list of the best write-offs for oil and gas contractors to make sure you’re getting the most out of your taxes. It’s time to watch those savings heat up!
Anything you wear to stay safe on the job is a write-off.
If you belong to a union, go ahead and write off your dues . The share of your dues that goes toward lobbying isn't deductible — your organization can tell you what percentage that is.
Where a union spends part of your dues on lobbying, that portion is not deductible.
If you take courses to learn new skills as a contractor, you can write off what you pay.
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.
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.
Heavy machinery is depreciated here over its useful life. Small hand tools are lower-cost supplies and belong on Box 22 instead.
Legal fees paid to set up your business or draw up paperwork are deductible.
All conferences and retreats you attend to enhance your skills and network can be written off.
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.
Freelancers, contractors, or other services that help you run your business are tax-deductible.
Pay any one contractor $600 or more in a year and you'll need to file a Form 1099-NEC for them.
Your phone, its monthly bill, and accessories are all partially deductible, in proportion to business use. The phone itself is depreciated on Box 13 (or expensed under Section 179); the monthly bill belongs on Box 27b, and accessories on Box 22.
Protecting yourself and your business with liability insurance? It's a write-off.
Fees to renew your license to perform your work are fully deductible.
Testing your work requires you to pay for out of pocket is deductible.
Fees for required background checks to do your job are deductible.
Any required certifications or licensing fees can be deducted.
If you drive for work ...
If you're using your car for work, can you claim associated costs on your taxes? Yes! Driving between worksites, picking up tools, or attending safety training are all reasons an oil or gas contractor might drive for work. That means you can write off car 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 ...
As a self-employed oil and gas contractor, the costs you incur while trying to grow your business can often be deducted.
For example, if you grab food or drinks with fellow contractors, you can write off the costs.
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 ...
If you travel to an out-of-town oil rig, you can claim your travel costs on 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 ...
If you consistently study safety procedures, plan projects, or communicate with clients from a particular spot in your home, you can deduct home office expenses.
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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