Money-Saving Secrets That Saved Me $5K In 2025

Did you know that nearly 30% of side hustlers don’t claim any business deductions on their taxes? Meanwhile, I was leaving thousands on the table until my accountant practically shook me by the shoulders! After years of fumbling through tax season, I’ve finally cracked the code on maximizing deductions for my various side gigs.

Look, when I started freelance writing and selling crafts on Etsy, taxes were the last thing on my mind. However, that first tax bill hit me like a ton of bricks. Since then, I’ve become somewhat obsessed with tracking every legitimate deduction I can find.

The Home Office Deduction That Almost Got Away

For three years, I worked from my kitchen table and never claimed a home office deduction. What a rookie mistake! Basically, if you use part of your home exclusively for business, you can deduct a portion of your rent or mortgage.

The simplified method lets you claim $5 per square foot up to 300 square feet. That’s potentially $1,500 right there! Although my “office” is just a converted bedroom corner, it still counts because I use it solely for work.

One time, the IRS actually questioned this deduction (talk about sweaty palms). Fortunately, I had photos showing my dedicated workspace. Now I always recommend taking pictures of your home office setup – you know, just in case.

Vehicle Expenses: My Biggest Win

This deduction was a game-changer for my delivery side hustle. Initially, I only tracked gas receipts. Then I discovered you can deduct either actual expenses or use the IRS standard mileage rate.

The mileage method is usually better for most folks. Currently, it’s 65.5 cents per business mile. Moreover, tracking miles is way easier than keeping every receipt for gas, oil changes, and repairs.

I use a simple mileage tracking app on my phone now. Before that, I tried keeping a notebook in my car, but honestly, I’d forget to write stuff down half the time. Technology for the win!

Equipment and Supplies: Don’t Forget the Small Stuff

Every business purchase counts, even the tiny ones. Furthermore, these deductions really add up over a year. My first year, I forgot to track things like printer paper, pens, and shipping supplies.

Here’s what typically qualifies:

• Computers, tablets, and smartphones (if used for business)
• Software subscriptions like Adobe Creative Suite or QuickBooks
• Office supplies and postage
• Tools and equipment specific to your side hustle
• Business cards and marketing materials

One gotcha I learned: if something costs over $2,500, you might need to depreciate it over several years. Nevertheless, most side hustle purchases fall well below this threshold. Additionally, the Section 179 deduction can help with bigger purchases.

Internet and Phone Bills: The Percentage Game

This one’s tricky because you probably use your internet and phone for personal stuff too. However, you can deduct the business percentage. For instance, if you use your phone 40% for business, you can deduct 40% of the bill.

I got dinged on this once because I claimed 100% of my internet bill. Oops! Now I keep a log for a typical week showing business versus personal use. Subsequently, I use that percentage for the whole year.

Some months are busier than others, sure. But the IRS seems okay with reasonable estimates as long as you can back them up.

Education and Professional Development

Y’all, this is probably the most overlooked deduction! Any courses, books, or conferences related to your side hustle are deductible. Furthermore, this includes online courses and even certain YouTube premium subscriptions if they’re educational.

Last year, I spent $500 on an online marketing course. Initially, I felt guilty about the expense. Then I remembered it’s actually helping me earn more AND it’s tax-deductible. Win-win!

Also, don’t forget about professional memberships and subscriptions. My writing association dues and industry magazine subscriptions all count.

Aim for Tax Success

Listen, I know taxes aren’t exactly thrilling. Nevertheless, these deductions can seriously reduce what you owe. Start by getting a separate bank account for your side hustle – it makes tracking so much easier.

Keep every receipt, even if you’re not sure it’s deductible. Furthermore, consider using accounting software or apps designed for freelancers. They’ve saved my sanity more times than I can count!

Remember, I’m not a tax professional (learned that disclaimer the hard way). Therefore, always consult with a qualified accountant or tax preparer for your specific situation. Meanwhile, start tracking those deductions now – your future self will thank you!

Ready to level up your financial game? Head over to The Extra Coin for more money-saving tips and side hustle strategies that actually work. Because honestly, we all deserve to keep more of what we earn!