The top 11 construction worker tax deduction checklist

On top of dealing with the hard labor that comes with being a self-employed construction worker, you'll need to deal with filing your own taxes. Yes, paying Uncle Sam is not the most pleasant experience...

But with tax deductions, you can make it a little more bearable.

One of the first steps in estimating your taxable income for the year is calculating your adjusted gross income (AGI). Adjusted gross income is defined as gross income minus adjustments to income aka after deductions.

According to the IRS, you can deduct business/ work-related expenses if they are both ordinary and necessary. In your trade or business, an ordinary expense is one that is typical and recognized. A necessary expense is one that is beneficial to your profession or industry. When it comes to your income tax, you would want to maximize your deductions and pay Uncle Sam as little as possible.

In this article, we'll go over the top ((11)) tax deductions for construction workers.

Note: If you want an automatic way to track construction worker tax deductions, try Bonsai Tax. Our tax app automatically scans your credit cards/bank statements to discover potential deductions. On average, our software saves users $5,600. Claim your 7-day free trial today.

Construction worker tax deduction checklist pdf

Keep detailed records of your receipts for each of these work-related expenses. Remember, the IRS states you must store receipts for a minimum of three years if you are audited. Expenses reimbursed by your employer cannot be claimed as tax deductions.

Without further ado, let's jump into our handy checklist of tax deductions for 1099 construction workers.

Safety equipment and uniforms

If you purchase any safety equipment related to construction work, it may qualify as a deduction. Here are some examples of equipment that you may be able to claim:

• Hard hats
• Safety goggles
• Gloves
• Protective footwear
• Ear protection

• Steel-toed boots
• First aid kits
• Safety glasses
• Hard hats
• Gloves
• Road cone
• Construction vest
• Gloves/hand protection

The clothing must be specific to your job and cannot be used for everyday wear. For example, although you wear jeans on your job site, since it is suitable for everyday wear, you cannot deduct the fees of this clothing. If your job requires you to have specific protective clothing or a uniform, those costs can be deducted.

Since most people would wear logo clothing only on the job, the shirts, hats or other items you provide for employees are deductible.

2. Business Travel Expenses

If your job requires you to go outside of town, any travel expenditures you incur can be claimed as a tax deduction. Traveling to see a client or to move between job sites qualifies as a write-off.

In other words, any business travel expenses are tax-deductible.

Travel expenses you can take advantage of include:

• Transportation costs (plane, train, bus, taxi, or mileage)
• Lodging expenses
• Meals while traveling for business
• Parking and toll fees

• Public transportation costs i.e. buses
• Uber/Lyft expenses
• Lodging i.e. hotels and AirBNBs
• Business meals
• Cost of business calls

You can deduct costs affiliated with attending an event. For example, if you attend a conference or trade show in Las Vegas, only expenses during the event days are deductible. Expenses beyond the event or for family members are not deductible.

3. Vehicle Expenses

There are two IRS-approved methods to deduct the business use of vehicle expenses: miles and the actual expenses.

Mileage

As an independent contractor or employee, you need to get reimbursement for the miles driven for work purposes.

You can deduct mileage for other work-related travel such as:

• From one work location to another
• To meet with clients
• To purchase building gear and materials

All you need to do is keep track of your miles driven for work (download a mileage log template). After you calculate your total miles, multiply it by the IRS's standard mileage rate. In 2024, the mileage rate is 65.5 cents per mile.

Actual Vehicle Expenses

If you claim the actual expenses method for vehicle costs from your taxes, then here are the deductions you may qualify for.

• Gasoline
• Lease payments
• Car insurance
• Maintenance/repair costs
• Tire purchases
• Car washes
• Depreciation
• Car registration.
• Parking fees

You can only deduct the business-related portion of these expenses. Records to keep to claim vehicle expenses may include preparation receipts or mileage logs.

Note: if you need help tracking all of the car expense receipts and all your other work-related expenses, try Bonsai Tax. Our app automatically discovers all the deductions you qualify for and easily saves you money during tax time. In fact, users typically save at least $5,600. Claim your 7-day free trial today.

4. Education Expenses

If you invest in courses or education related to construction work, then the expenses are tax-deductible. They must be directly related to your line of work. For example, a construction worker who enrolls in a first aid certification course may deduct the cost of the seminar and all of the related expenses i.e. textbooks.

Again, you may to claim any self-education directly related to your current employment and income if it improves your skills or increases your income for your current role.

You cannot claim tax deductions for education expenses where you are trying to be promoted to a new employment position or changing jobs.

5. Home Office Expenses

Construction workers with a home office space may qualify for a home office deduction. Just like vehicle expenses, you can get a home office reimbursement for related fees with two methods: the regular and the simplified method.

Regular Method

For the regular method of deducting home office fees, you'd be able to write off things like:

• utilities like water bills or electricity
• mortgage interest
• insurance
• office repairs
• depreciation.

Take note of all these fees and you can deduct the business-related use percentage for your home office.

Note: An easy way to record tax deductions for construction workers, is with our software. Construction workers can sit back and relax as our software records all the potential deductions and saves you money from your tax bill. Users typically save $5,600 from their tax bill. Try a 7-day free trial today.

Simplified Method

As the name states, this method is fairly easy to calculate. You simply deduct $5 for each square foot of your home office when using this method. However, because the deduction is limited to $1,500 per year, it can only be used for workplaces that are less than 300 square feet.

Tools for the trade and equipment

In order to do construction work and deliver on your service, you may have to purchase construction equipment or other tools. Tools or equipment used solely for business purposes is tax-deductible.

Here is a list of tools you can deduct at the end of the tax year:

• Heavy machinery
• Hand tools
• Power tools
• Protective gear

• Hammer
• Electric drills
• Wheelbarrows
• Saws
• Screwdrivers
• Work phone
• Shovels
• Nail pullers
• Wrenches
• Ladders

You can deduct the depreciation of heavy machinery or tools you purchase. Tools that last for more than a year are considered business assets.

7. Advertising

Any money spent to advertise your services is tax-deductible. What falls into this category are online advertising expenses like Google Adwords, Facebook ads, and even physical billboards.

8. Phone Bill

When it comes to deducting your phone bill, you can only deduct the business use portion percentage from your tax bill. For example, let's say you use your cell phone 85% of the time for personal reasons and 15% of the time for business. You'd only be able to deduct 15% of the expense from your tax bill.

9. Legal Fees

As a construction worker, if you paid legal fees related to your self-employed business, you can write off the cost as an expense on your tax return. The costs associated with hiring an accountant for tax advice or filing your tax return can also be deducted.

Meals for work

If you discuss work with a coworker, employer, employee, or even friend over a meal, the cost of the food can be deducted from your taxes. Typically, the meal deduction is 50%. However, a 100% meal tax deduction law was passed in 2023 for certain business meals.

11. Labor Costs

If you subcontract other employees to complete your services, you can deduct the costs. As a self-employed construction worker, you are allowed to hire other contractors to complete your job.

We always recommend you seek the help of a professional for advice and assistance for filing your tax returns. Our software can help you manage your taxes and save money, but it is your responsibility to complete your tax return properly.

Common mistakes to avoid when claiming construction worker deductions

Failing to keep detailed and organized records

Failing to keep detailed and organized records is one of the biggest mistakes construction workers make when claiming tax deductions. The IRS requires clear documentation to support any deduction, including receipts, invoices, and mileage logs. Without these, you risk losing valuable deductions or facing audits.

For example, if you claim vehicle expenses, you must track your miles driven specifically for work. Using apps like MileIQ or Everlance in 2024 can automate this process, ensuring accuracy and saving time. Similarly, keeping a dedicated folder or digital file for all work-related purchases helps you quickly access proof during tax season.

To avoid this mistake, start your record-keeping early in the year and update it regularly. Download a construction worker tax deduction checklist PDF from trusted sources like HelloBonsai to ensure you capture all deductible expenses systematically.

Mixing personal and business expenses

Mixing personal and business expenses can lead to incorrect deduction claims and potential IRS penalties. Construction workers often use tools, vehicles, or phones for both personal and work purposes, but only the business portion is deductible.

For instance, if you use your phone for work 60% of the time, only 60% of the phone bill qualifies as a deduction. Similarly, if a vehicle is used 70% for work, you must prorate expenses like gas and maintenance accordingly. Tools and equipment must be used exclusively or primarily for work to qualify.

Track usage carefully and separate expenses to avoid this common pitfall. Using accounting software like QuickBooks Self-Employed in 2024 can help categorize expenses correctly, making tax filing smoother and more accurate.

Overlooking state-specific tax rules and limits

Overlooking state-specific tax rules and deduction limits can reduce your refund or cause compliance issues. Construction workers should be aware that some states have different rules on what expenses qualify and how much can be deducted.

For example, California allows certain equipment depreciation deductions that other states might not. Meanwhile, states like Texas do not have state income tax but may have other local tax considerations. Additionally, some states require separate documentation or forms for work-related deductions.

Research your state’s tax laws or consult a tax professional familiar with construction industry regulations in your area. Using a construction worker tax deduction checklist PDF tailored for your state can help ensure you don’t miss any important details.

Neglecting to claim all eligible deductions

Neglecting to claim all eligible deductions lowers your potential tax savings. Construction workers often miss deductions for expenses like:

• Safety gear
• Union dues
• Training courses
• Home office costs, if applicable

In 2024, the IRS allows deductions for PPE (personal protective equipment) such as hard hats and gloves if purchased for work. Continuing education related to your trade can also qualify as a deduction. Even small expenses like work boots or specialized software subscriptions can add up.

Review a comprehensive construction worker tax deduction checklist PDF to identify all possible deductions. Regularly updating your list throughout the year ensures you capture every eligible expense before filing your taxes.

How to use the construction worker tax deduction checklist pdf

Download and organize the checklist before tax season

Start by downloading the construction worker tax deduction checklist PDF from a reliable source like the IRS website or a trusted financial platform. Having a digital or printed copy ready before tax season helps you stay organized and ensures you don't miss any deductions specific to your trade.

Once downloaded, review the checklist to familiarize yourself with common deductions such as:

• Tool expenses
• Safety gear
• Mileage
• Union dues

Organize your receipts and records accordingly, grouping them under the categories listed in the checklist. For example, keep all invoices related to protective equipment in one folder labeled "Safety Gear."

Using a dedicated folder or app like Evernote or Google Drive to store these documents makes it easier to access them during tax preparation. This proactive step reduces stress and speeds up filing, especially if you use tax software like TurboTax or work with an accountant.

Follow the checklist to track deductible expenses accurately

The checklist PDF acts as a step-by-step guide to track deductible expenses throughout the year. Regularly updating your records according to the checklist categories prevents last-minute scrambles and missed deductions. For instance, log your daily mileage for job sites using apps like MileIQ to capture accurate travel expenses.

Pay special attention to less obvious deductions such as union fees, training costs, and home office expenses if you manage paperwork from home. The checklist highlights these areas, reminding you to keep supporting documents like receipts or bank statements. This detailed tracking aligns with IRS requirements for substantiating deductions in 2024.

By following the checklist consistently, you maximize your tax savings and avoid errors that could trigger audits. Set monthly reminders to update your expense log and reconcile it with the checklist categories to maintain accuracy.

Use the checklist to prepare for filing or working with a tax professional

When it’s time to file your taxes, the checklist PDF serves as a comprehensive summary of all deductible expenses. Whether you file using tax software like H&R Block or consult a CPA, presenting a well-organized checklist with receipts simplifies the process and improves accuracy.

If you work with a tax professional, share the checklist and your organized documents beforehand. This preparation allows them to identify all eligible deductions specific to construction workers, such as equipment depreciation or union contributions, which might otherwise be overlooked.

After filing, keep the checklist and supporting documents for at least three years, as recommended by the IRS. This practice ensures you are prepared in case of audits or questions about your deductions. Using the checklist PDF as a filing roadmap makes tax season less stressful and more efficient.