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 bya tax professionalThis content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.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.
This includes uniforms or any branded items you must wear while working.
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.
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 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.
Oil changes, repairs, and regular checkups are all tax-deductible if you drive for work.
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!
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, all meals are tax-deductible. Even takeout!
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.
You can write off up to $2,500 for individual repairs to your property.
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.
Your Comcast bill is a tax write-off. You need internet to do your job!
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