What should be included in your startup costs?

Supplies and Equipment

Running a side business often requires a variety of materials and tools. Whether you're buying software, office supplies, or products for resale, these expenses can be deductible. Think about the items that help you operate effectively—printers, paper, pens, and even subscription services that enhance your productivity.

For example, if your side hustle involves graphic design, any software you purchase, like Adobe Creative Suite, is a valid deduction.

You can also include that if you need to buy a new laptop to manage your workload. Keeping detailed records of these purchases and their related costs will help you maximize your deductions and, ultimately, your savings.