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Don't Overpay! The Ultimate List of Overlooked Tax Deductions for Indiana Gig Workers & Small Biz Owners
Driving for Uber, running an MLM, or a solo LLC in Indiana? Our ultimate guide reveals the hidden tax deductions on Schedule C you’re likely missing, from startup costs to phone bills.
Navigating taxes as a solopreneur, gig worker, or small business owner in Indiana can feel like a maze. When you’re focused on the hustle—whether that’s completing deliveries, building your downline, or serving your clients—it’s easy for tax deductions to fall through the cracks. The result? You end up paying more than you should.
This guide is designed to shine a light on those shadowy corners of the tax code, revealing the deductions that can legally and ethically put hundreds, or even thousands, of dollars back in your pocket. Let’s dive into the ultimate list of overlooked deductions for anyone filing a Schedule C.
The Big, Overlooked Deductions
These are the substantial deductions that can make a significant dent in your taxable income but are frequently missed due to complexity or misunderstanding.
The Home Office Deduction
What it is: A deduction for the business use of your home. You can deduct a percentage of your rent, mortgage interest, utilities, insurance, repairs, and even internet bill based on the square footage of your dedicated office space.
Who it’s for: MLM leaders managing their team from a desk, gig workers planning routes, consultants with a dedicated workspace.
Key Point: The space must be used exclusively and regularly for your business. Don’t let the “audit scare” talk you out of this legitimate deduction.
The Self-Employment Tax Deduction
What it is: A deduction for 50% of the self-employment tax (Social Security and Medicare) you pay. This is essentially the “employer half” of the tax, which the IRS lets you deduct.
Who it’s for: All self-employed individuals. It’s an automatic adjustment that lowers your Adjusted Gross Income (AGI).
The Qualified Business Income (QBI) Deduction
What it is: A deduction of up to 20% of your net business income. This isn’t a tax credit, but a deduction from your income, and it’s incredibly powerful.
Who it’s for: Most sole proprietors and single-member LLCs, including gig workers and MLM distributors (subject to income limits). Many are still unaware this deduction exists.
Section 179 & Bonus Depreciation for Assets
What it is: The ability to fully deduct the cost of qualifying business assets in the year you purchase them.
Who it’s for: Rideshare Drivers: Did you buy a new car used primarily for business? You might be able to take a massive first-year deduction.
Everyone Else: This applies to computers, printers, specialized tools, office furniture, and even software.
The "Hidden in Plain Sight" Deductions
These are everyday expenses that many business owners don’t think to track, but they add up quickly.
Vehicle & Transportation Expenses (Beyond Standard Mileage)
Standard Mileage Rate: The easiest method (e.g., 65.5 cents/mile in 2023). Gig workers, track every business mile!
Actual Expenses (What’s Often Missed):
Parking & Tolls: Those fees at the airport or downtown are 100% deductible.
Car Washes: Keeping your car clean for rideshare or client meetings is a business expense.
Ride/Delivery-Specific Items: Insulated bags, phone mounts, chargers, and even bottled water for passengers.
Platform & Professional Costs
For Gig Workers: A percentage of your cell phone bill, app subscription fees (like a mileage tracker), and any commissions or fees taken by Uber, DoorDash, etc.
For MLM Distributors: Product samples (cost, not retail value), website fees, team training materials, and travel to company conferences.
For All: Bank fees for your business account, payment processing fees (Square, PayPal, credit card fees), and software subscriptions (QuickBooks, Canva, Adobe Creative Cloud).
The "Wait, I Can Deduct That?!" Deductions
These are the most commonly overlooked deductions that can surprise many new business owners.
Startup Costs
What it is: You can deduct up to $5,000 of business costs you incurred before you officially opened for business.
Examples: Market research, legal fees for setting up your LLC, business licensing fees, and initial advertising. If your costs exceed $5,000, the remainder can be amortized.
Education & Training
What it is: The cost of education that maintains or improves skills needed for your current business.
Examples: A course on social media marketing for your MLM, a defensive driving course for a rideshare driver, or a webinar on using QuickBooks for your bookkeeping.
Health Insurance Premiums
What it is: If you are self-employed and not eligible for a plan through a spouse or employer, you can deduct 100% of your health, dental, and qualified long-term care insurance premiums for yourself, your spouse, and your dependents. This deduction is taken on your Form 1040, not your Schedule C, but it directly reduces your self-employment income.
Retirement Plan Contributions
What it is: Contributions to a SEP-IRA or Solo 401(k) are deductible, reducing your taxable income today while you save for the future. This is one of the most powerful tax-saving tools available to the self-employed.
Interest on Business Debt
What it is: Interest on money you borrowed for business purposes is deductible.
Examples: Interest on a business loan or credit card used exclusively for business purchases.
How to Build a System to Capture Every Single Deduction
Knowledge is power, but a system is what saves you money.
Go Digital: Use a dedicated business banking account and a mileage-tracking app from day one. The automation is worth its weight in gold.
Embrace “Ordinary & Necessary”: The IRS standard is broad. If an expense is common and accepted in your field and is helpful for your business, it’s likely deductible. When in doubt, track it and ask a professional later.
Keep Impeccable Records: This is non-negotiable. Use a digital folder for receipts, take photos with your phone, and keep a simple log. Good records are your best defense in an audit and your best tool for maximizing refunds.
When It’s Time to Call a Professional
While you can manage your own books, the complexity of deductions like QBI, Section 179, and startup costs means a consultation with a tax professional can pay for itself. This is especially true if you have a mix of W-2 and 1099 income, or if your business has grown significantly.
Let Indy Biz + Brand Be Your Financial Co-Pilot
Feeling overwhelmed by tracking everything? You’re not alone. At Indy Biz + Brand, we specialize in setting up solopreneurs, gig workers, and small business owners for financial success. We don’t just set up your QuickBooks—we help you build a system to track every mile, categorize every expense, and maximize every deduction, turning tax season from a source of stress into an opportunity for savings.
Stop leaving money on the table. Schedule a tax consultation with us today to build a rock-solid financial foundation for your hustle.