21 Tax Write-Offs for Railroad Contractors

NAICS business code811310
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Learning to file your taxes as a railroad contractor can be stressful. But we have just the ticket to help make the road ahead a little easier to navigate: a list of write-offs that railroad workers typically qualify for!

By tracking the money you spend on things like safety training, licensing fees, protective gear, and the other work-related expenses that we've listed below, you'll find yourself on the right track to tax savings.

Uniforms

Any uniforms you're required to wear on the job are considered tax-deductible.

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.

Where to write it off: Schedule C, Box 27b
Safety training

Any required training on safety protocols 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.

Where to write it off: Schedule C, Box 27b
Protective gear

Write off the protective gear, like goggles and gloves, you wear on the job.

Where to write it off: Schedule C, Box 22
Licensing fees

Fees to renew your license to perform your work are fully deductible.

Where to write it off: Schedule C, Box 23
Continuing education classes

Continuing education classes required to keep your job are fully deductible.

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.

Where to write it off: Schedule C, Box 27b
Union dues

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 โ€” your organization can tell you what percentage that is.

Where a union spends part of your dues on lobbying, that portion is not deductible.

Where to write it off: Schedule C, Box 27b
Liability insurance

Protecting yourself and your business with liability insurance? It's a write-off.

Where to write it off: Schedule C, Box 15
Drug & alcohol testing

Testing your work requires you to pay for out of pocket is deductible.

Where to write it off: Schedule C, Box 27b
Background checks

Fees for required background checks to do your job are deductible.

Where to write it off: Schedule C, Box 27b
Contract labor

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.

Where to write it off: Schedule C, Box 11
Legal fees

Legal fees paid to set up your business or draw up paperwork are deductible.

Where to write it off: Schedule C, Box 17
Accountant fees

Do you pay a professional to audit your financial records and take care of your tax planning? Their fees are a write-off.

Where to write it off: Schedule C, Box 17
Advertising

Print and online advertising costs for your business are considered write-offs.

Where to write it off: Schedule C, Box 8
Phone, laptop, accessories

If you buy a phone or laptop and use it for work, it's partially deductible โ€” 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.

Where to write it off: Schedule C, Box 13

If you drive for work ...

You don't need to drive your car every day for work to claim related car expenses. Even the odd trip downtown to pick up necessary supplies, or a drive between job sites, counts.

Parking

Parking for a meeting downtown, or any other work trip, is tax-deductible!

Where to write it off: Schedule C, Box 9
Tolls

A toll while driving to or from a work destination is tax-deductible!

Where to write it off: Schedule C, Box 9
Car purchase & depreciation

If you buy a new car, you can write off part of the cost every year for five years.

Where to write it off: Schedule C, Box 13
Vehicle tool kit

Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.

Where to write it off: Schedule C, Box 22
Car insurance & registration

Car insurance monthly fees, registration, even roadside assistance are partially deductible โ€” if you use the actual expense method. The standard mileage rate already covers them.

Where to write it off: Schedule C, Box 9
Car maintenance

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.

Where to write it off: Schedule C, Box 9

If you discuss work at a restaurant ...

Business meals are tax-deductible, so if you meet a fellow railroad worker at a restaurant to talk about work, you can write it off.

Business meals

If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off โ€” 50% of the tab.

Where to write it off: Schedule C, Box 24b

If you leave town for work ...

It can be full steam ahead on tax savings if you claim costs associated with business travel, like attending an industry conference or workshop.

Transportation

Planes, trains, and car rentals are all work-related travel costs that can be written off.

Where to write it off: Schedule C, Box 24a
Travel lodging

When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.

Where to write it off: Schedule C, Box 24a
Meals while traveling

When you're traveling for work, your meals are 50% deductible โ€” takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)

Where to write it off: Schedule C, Box 24b

If you work from home ...

If you take an online course, do industry research, or manage client paperwork from a designated at-home workspace, welcome aboard the home office deductions train!

Home office furniture

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.

Where to write it off: Schedule C, Box 18
Property repairs

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.

Where to write it off: Schedule C, Box 21
Power bill

Gotta keep the lights on in your home office! A portion of your electricity bill counts.

Where to write it off: Form 8829
Property insurance

Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.

Where to write it off: Form 8829
Water bill

It'd be hard to work in an office without running water, huh? Your water bill counts.

Where to write it off: Form 8829
Wi-Fi bill

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.

Where to write it off: Schedule C, Box 25

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