Starting a new business - Can I use Schedule C deductions while taking the standard deduction?

I'm planning to launch a small photography business in the next couple months while keeping my day job. My husband and I always file taxes jointly, and honestly this side gig won't bring in huge money so I doubt we'd ever need to itemize instead of taking the standard deduction for married couples. What I'm trying to understand is - can I still claim the standard deduction on our joint return AND deduct business expenses on Schedule C to reduce my business profits (lowering both self-employment taxes and regular income tax)? For example, if I invest in a new camera that costs $1,200 primarily for this business, can I deduct that on Schedule C? What about things like photo editing software, props, backdrops, etc.? Or can I only deduct materials directly used to create physical products I sell? Really appreciate any insight on how this works. First-time business owner trying not to mess up our taxes!

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20 comments

Mei Zhang

•8M

Yes, you absolutely can take the standard deduction on your personal return while also deducting legitimate business expenses on Schedule C! These are two completely separate things. The standard deduction applies to your personal tax situation (filing status, etc.) while Schedule C expenses are strictly business-related and reduce your business profit before it becomes part of your personal income. For your photography business, you can deduct all ordinary and necessary business expenses. This includes your camera equipment, editing software, props, backdrops, memory cards, computer (if primarily used for business), website costs, advertising, studio rental if applicable, and even a portion of your home expenses if you have a dedicated home office space. Just keep good records of everything! The key is that these expenses must be ordinary (common in your industry) and necessary for running your business. Personal expenses can't be deducted, and if something is used partly for business and partly personal, you can only deduct the business portion.

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Mei Zhang

•8M

For mixed-use items like computers, you should track your business vs. personal usage as accurately as possible. You can keep a log for a few months to establish a pattern of use, then apply that percentage to the cost. So if your computer cost $1,500 and you use it 80% for business, you could deduct $1,200. For higher-value items like computers, the IRS may want to see some documentation of how you determined that percentage if you're ever audited. A simple log noting business vs. personal hours for a representative time period is usually sufficient. Just be honest and reasonable with your estimate.

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Amara Oluwaseyi

•8M

Just wanted to share my experience - I was super confused about this exact thing when I started my side business last year. I found this tool called taxr.ai (https://taxr.ai) that analyzes your specific situation and explains exactly what you can deduct. Saved me a ton of hassle trying to figure out what counted as a legitimate business expense for my Schedule C. It asked about my business type and then gave me a personalized list of deductions I could take. For my graphic design business, it showed me I could deduct my new laptop, software subscriptions, and even part of my internet bill - all while still taking the standard deduction with my husband. Definitely worth checking out if you're new to self-employment.

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Amara Oluwaseyi

•8M

It doesn't just list deductions - it explains the tax code reasoning behind each one and what documentation you need to keep. For example, it explained to me why my home internet was partially deductible (based on business use percentage) and how to document that properly for the IRS. Compared to regular tax software, the big difference is this focuses specifically on self-employment and business deductions before you even start filing. TurboTax asks questions as you go, but taxr.ai helps you plan and organize everything ahead of time, which helped me track expenses better throughout the year. I found deductions I would have missed otherwise, especially for my home office and vehicle expenses.

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Giovanni Rossi

•8M

I tried that taxr.ai site after seeing the recommendation here and wow - it was actually super helpful for my situation. I've been running a small Etsy shop selling handmade jewelry for about 6 months and was totally confused about what I could deduct. The tool showed me I could deduct things I hadn't even considered - like a portion of my cell phone bill since I use it for business calls and social media marketing. Also cleared up my confusion about inventory vs. supplies (they're treated differently on Schedule C). My favorite part was the documentation checklist it created for each deduction. Now I know exactly what receipts and records to keep for everything. Definitely feeling more confident about filing my taxes next year!

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Fatima Al-Maktoum

•8M

If you're planning to call the IRS with questions about Schedule C deductions (which I tried to do), good luck getting through. After being on hold for literally 3+ hours multiple times, I discovered this service called Claimyr (https://claimyr.com) that got me connected to a real IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first but desperate after wasting so much time on hold. The IRS agent I spoke with clarified exactly how to handle my photography equipment depreciation vs. direct expense options on Schedule C. Totally worth it considering how much time I wasted trying to call directly.

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Fatima Al-Maktoum

•8M

They use an automated system that navigates the IRS phone tree and waits on hold for you. When an agent actually picks up, you get a call back and are connected immediately. They don't skip the line - they just handle the waiting part so you don't have to sit there listening to hold music for hours. It's not about getting priority treatment - it's about not having to waste your own time waiting. The IRS phone system will often disconnect calls after long hold times, so their system also handles redialing when that happens. Basically they have technology that keeps your place in line so you don't have to do it manually.

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Sofia Gutierrez

•8M

I need to apologize for being so skeptical about Claimyr in my earlier comment. After waiting on hold with the IRS for over 2 hours yesterday (and getting disconnected TWICE), I decided to try it out of frustration. The service actually worked exactly as described. I got a call back in about 15 minutes connecting me to an IRS representative who answered all my Schedule C questions. Found out I can deduct my mileage driving to client sites, something I wasn't sure about before. For anyone running a small business and needing to speak with the IRS directly, this really does save hours of frustration. I'm actually shocked at how well it worked.

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Dmitry Petrov

•8M

A tip from someone who's been self-employed for 7 years: buy a separate credit card that you ONLY use for business expenses. Makes tracking everything for Schedule C so much easier at tax time. Also set up a separate checking account for your business income and expenses. The standard deduction vs Schedule C confusion is super common. Think of your business as a separate entity from your personal taxes. Schedule C is where you report business income AND expenses, and the net profit flows to your personal return. Then on your personal return, you decide whether to take the standard deduction or itemize personal deductions. Trust me, keeping everything separate from day one will save you massive headaches later!

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Dmitry Petrov

•8M

Having separate business accounts actually REDUCES your audit risk. The IRS looks for commingling of personal and business funds as a red flag. When you keep everything separate, it shows you're treating the business as a legitimate enterprise and makes it much easier to substantiate your deductions if you are ever questioned. What can trigger audits is inconsistent reporting, unusually high deductions compared to income, or round numbers that look made up. Clean recordkeeping with separate accounts demonstrates you're keeping proper books and following best practices, which is exactly what the IRS wants to see.

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Jacob Lewis

•2M

Great question! I went through this exact same confusion when I started my consulting business. The key thing to understand is that Schedule C business deductions and your personal standard deduction are completely independent of each other. Think of it this way: Schedule C calculates your business profit (income minus expenses), and that NET profit then becomes part of your personal income on Form 1040. Then separately, you decide whether to take the standard deduction or itemize your PERSONAL deductions (like mortgage interest, charitable donations, etc.). For your photography equipment - absolutely deductible on Schedule C if it's used for business! The $1,200 camera, editing software, props, backdrops, lighting equipment, memory cards, etc. are all legitimate business expenses. You can either expense smaller items immediately or depreciate larger equipment over several years. One thing to watch out for: make sure you can demonstrate this is a business and not just a hobby. The IRS has a "hobby loss rule" that can disallow deductions if they think you're not trying to make a profit. Keep good records, have a business plan, and try to show profit in at least 3 of 5 years. Also consider setting up a separate business bank account and credit card from day one - it makes tracking expenses so much easier come tax time!

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