Receipt Scanner & Expense Tracker for Contractors and Tradespeople
From tools to materials to your work truck, the trades come with major deductible costs. NeoReceipt scans your supply-store and fuel receipts and files them into Schedule C so nothing slips through before tax time.
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Key takeaways
- Independent tradespeople file a Schedule C and pay self-employment tax on net profit.
- Tools, materials, and the work vehicle are the largest deductions.
- Subcontractor payments are deductible and may require issuing a 1099.
- Untaxed contractor pay means you should make quarterly estimated payments.
Deductions independent contractors in the trades can track
NeoReceipt sorts each receipt into the matching IRS Schedule C category.
Tools and equipment
Power tools, gear
Materials and supplies
Job consumables
Vehicle and mileage
Work truck and job-site drives
Safety gear
Boots, gloves, PPE
Phone
Business-use portion
Subcontractor pay
Crew and helpers
Licenses and permits
Trade licensing, job permits
Job-site meals
Qualifying business meals
Estimate what you'll owe with the 1099 tax calculator and self-employment tax calculator.
How are contractors in the trades taxed?
If you work as an independent contractor rather than an employee, your pay arrives without withholding. You report it on Schedule C, subtract tools, materials, and vehicle costs, and pay self-employment tax of 15.3 percent plus income tax on the profit. General contractors and clients may send a 1099-NEC. Because the income is untaxed at the source and often seasonal, setting aside a share of each payment and making quarterly estimated payments keeps you ahead of your tax bill.
Deducting tools, materials, and your work truck
Tools and equipment are deductible, and larger purchases can often be expensed fully in the year of purchase. Job materials and consumables are deductible as the cost of doing business. Your work vehicle is a major write-off, claimed either by the standard mileage rate or actual expenses like fuel, repairs, and insurance applied to the business-use share. Capture every supply-store and fuel receipt with NeoReceipt, and log your job-site miles, so both methods are supported by solid records.
Subcontractors, licenses, and other write-offs
Payments to crew and subcontractors are deductible, though you may need to issue them a 1099 if you pay 600 dollars or more in a year. Trade licenses, job permits, safety gear and PPE, the business share of your phone, and qualifying job-site meals are deductible as well. These receipts pile up across multiple jobs, so capturing each one in NeoReceipt as you go keeps your records organized by Schedule C category and ready for filing.
Common tax mistakes tradespeople make
The common pitfalls are not tracking mileage between job sites, losing cash receipts from supply runs, and forgetting to document subcontractor payments. Many also skip quarterly payments during busy stretches and scramble at year-end. Snapping every tool, material, and fuel receipt the moment you buy, and keeping a steady mileage log, both lowers your tax and gives you the proof you need if a deduction is ever challenged.
From receipt to deduction in seconds
Snap or upload
Photograph any receipt, or forward email receipts to your inbox address.
AI categorizes it
We read the merchant, date, and total, then assign the right Schedule C line.
Export at tax time
Download a clean CSV grouped by category for you or your accountant.
Built for independent contractors in the trades
Stop leaving deductions in a shoebox. NeoReceipt captures every receipt and keeps your Schedule C totals ready all year.
Get started freeFrequently asked questions
What can a 1099 contractor in the trades deduct?+
Tools and equipment, materials and supplies, vehicle and mileage, safety gear, phone, subcontractor pay, licenses and permits, and qualifying job-site meals are common Schedule C deductions.
Can I deduct my work truck?+
Yes. You can deduct vehicle costs by mileage or actual expenses. Keep fuel, repair, and supply receipts in NeoReceipt and log your job-site miles.
How do I handle subcontractor payments?+
Payments to subcontractors are deductible, and you may need to issue them a 1099. Keep the receipts and records organized so filing is simple.