Updated November 8, 2026. Quick answer: A self-employed virtual assistant works from a home office, so the home office, internet and phone, software and contract help carry most of the deductions. The two rules that matter most: the home space must be used exclusively and regularly for administrative work, and the base rate of your first home phone line is not deductible while extra business costs are.
The deductions this work usually has to sort out
This page reads the IRS documents linked under Sources, as retrieved on November 8, 2026. The IRS publications and instructions cited here are the 2025 editions, written for returns filed for 2025; check the current edition before relying on a figure.
Every deduction below has to pass one test first. Publication 334 puts it this way: “To be deductible, a business expense must be both ordinary and necessary.” “An ordinary expense is one that is common and accepted in your field of business.” “A necessary expense is one that is helpful and appropriate for your business.” And where a cost is mixed: “If you have an expense that is partly for business and partly personal, separate the personal part from the business part.”
This table is the usual set for a self-employed virtual assistant. The line shows where the Schedule C instructions place that kind of cost; whether a particular purchase qualifies is the ordinary-and-necessary question above.
| Cost | Schedule C line | What to keep | Where it is explained |
|---|---|---|---|
| Project management and scheduling tools | Line 18 or Part V | Subscription invoices | Schedule C lines 17 to 19 |
| Internet service (business share) | Line 25 | Bills and a business-use percentage | cell phone and internet business-use records |
| Second phone line or business-only cost | Line 25 | Bills | cell phone and internet business-use records |
| Laptop, monitor, headset | Line 13 or Part V | Invoice with the date and price | equipment and depreciation records |
| Contract help (another VA) | Line 11 | Invoices and each payee’s Form W-9 | Schedule C lines 10 and 11 |
| Home office | Line 30 | Measurements and bills | home office records for Form 8829 |
| Advertising and a website | Line 8 | Invoices | Schedule C lines 8 and 9 |
| Accountant fees | Line 17 | Invoices | Schedule C lines 17 to 19 |
| Liability insurance | Line 15 | Policy declarations | Schedule C lines 14 and 15 |
Home office as a principal place of business
A virtual assistant is the textbook case for the administrative route: “You use it exclusively and regularly for administrative or management activities of your business.” and the second condition is that you have no other fixed place where you do substantial administrative or management work. Exclusivity decides it: “You don’t meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes.” A desk in the living room also used for the household does not pass. If you qualify, the simplified method is “In most cases, you will figure your deduction by multiplying $5 by the area of your home used regularly and exclusively for a qualified business use.” subject to “The area you use to figure your deduction is limited to 300 square feet.” Records are on home office records for Form 8829.
Phone and internet
The Schedule C instructions for line 25 say “Deduct utility expenses only for your trade or business.” On a home phone: “If you used your home phone for business, do not deduct the base rate (including taxes) of the first phone line into your residence.” The instructions allow the extra: “But you can deduct any additional costs you incurred for business that are more than the base rate of the first phone line.” Internet and mobile plans have no equivalent passage in these documents, so the practical approach is a documented business-use percentage; see cell phone and internet business-use records.
Hiring another assistant
Payments to a subcontractor go on line 11. “You must file Form 1099-NEC to report contract labor payments of $600 or more during the year.” That is the 2025 instruction; the current threshold is on the 2026 Form 1099-NEC threshold.
Small equipment purchases
Tools and small equipment bought as tangible property can be expensed in one year if they fall under the small-purchase election: “If you don’t have an applicable financial statement, you may use the de minimis safe harbor to deduct amounts paid for tangible property up to $2,500 per item or invoice.” Keep the invoice with the item and date; the election is explained on the de minimis safe harbor and receipts.
The big items outside the line-by-line list
| Big item | How it comes up for this work | Live pages |
|---|---|---|
| Home office | See the first section above; a virtual assistant with a dedicated workspace and no other office is the usual qualifying case. | home office records for Form 8829; Schedule C line 30 |
| Vehicle | Most virtual assistants log little or no business mileage; a log matters only for the occasional client meeting or errand. | mileage log requirements; Schedule C lines 8 and 9 |
| Health insurance | Your own premiums are a Schedule 1 deduction, not a Schedule C cost. “Do not include on line 14 any contributions you made on your behalf as a self-employed person to an accident and health plan.” The same instructions point you to Schedule 1: “you may be able to deduct on Schedule 1 (Form 1040), line 17, the amount you paid for health insurance on behalf of yourself, your spouse, and dependents, even if you do not itemize your deductions.” | Schedule 1 line 17 |
| Retirement plan for yourself | “If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 16 of Schedule 1 (Form 1040).” Plan contributions for employees go on Schedule C line 19, which is why the retirement row sits outside the Schedule C table. | Schedule 1 lines 15 and 16; SEP-IRA contributions |
| Qualified business income | Whether this work qualifies for the QBI deduction at higher income depends on thresholds that change yearly; read the live page for the current numbers. | QBI deduction thresholds for 2026 |
Records
Publication 463 sets the bar: “You must generally have documentary evidence such as receipts, canceled checks, or bills, to support your expenses.”
For capture of software and equipment receipts, SparkReceipt’s home page says you can snap a receipt at the counter in the phone app; Dext’s US home page says you can send receipts, invoices and statements by mobile, email, WhatsApp or desktop. These are the vendors’ statements; this page has not used either product. A folder of photographed receipts and a spreadsheet meet the same IRS test, which is whether the record exists and was made close to the time.
Common mistakes
- Deducting the base rate of the first home phone line.
- Using a shared desk for the home office deduction.
- Paying a subcontractor and missing the Form 1099-NEC.
Related: tax deductions by profession, Schedule C business code for businesses not on the list, and the home office deduction.
Sources
- IRS Publication 334 (2025), Tax Guide for Small Business (For Individuals Who Use Schedule C)
- IRS Publication 463 (2025), Travel, Gift, and Car Expenses
- Instructions for Schedule C (Form 1040) (2025)
Read from the IRS documents linked above on November 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.