Virtual Assistant Tax Deductions: 2026 Write-Offs

Last updated July 2026.

A self-employed virtual assistant writes off the ordinary costs of running the business: a home office, the computer and monitor, software and subscriptions, internet and phone, professional development, business insurance, payment and invoicing fees, and the employer half of self-employment tax. Because a virtual assistant provides administrative and support services, the work is not a specified service trade, so most VAs also keep the full 20% qualified business income deduction. The biggest single write-off for a home-based VA is usually the home office, and the most commonly missed ones are the portion of internet, phone, and software used for client work.

What can a self-employed virtual assistant write off on taxes?

You can deduct any expense that is ordinary and necessary for your VA business. In practice that means the home office, your computer and peripherals, the software you run a client's day on (project management, email, scheduling, design, and accounting tools), the business-use share of internet and cell phone, a coworking membership, professional development and courses, business insurance, bank and payment-processor fees, and marketing. Each deduction needs a record showing the amount, date, place, and business purpose, which is why the receipt, not the card statement, is what protects the write-off.

What is the business code for a virtual assistant on Schedule C?

Most virtual assistants use NAICS code 561410 (document preparation services) or 561110 (office administrative services) in Box B of Schedule C, and some who lean toward specialized professional work use 541990 (all other professional, scientific, and technical services). Pick the one that best matches the bulk of what you actually do. The code does not change your deductions, but it should reflect your real activity, because it feeds the IRS classification of your return.

Can a virtual assistant deduct a home office?

Yes, if a part of your home is used regularly and exclusively for the business. You have two methods. The simplified method deducts $5 per square foot up to 300 square feet, a $1,500 maximum, with no receipts for the space itself. The regular method deducts the business-use percentage of actual home costs: rent or mortgage interest, utilities, insurance, and repairs. Run both once; a VA in a small apartment often does better with the regular method, while the simplified method wins on paperwork. The room has to be a dedicated workspace, not the kitchen table.

Can a virtual assistant deduct a computer, software, and subscriptions?

Yes. A computer, monitor, keyboard, headset, and webcam used for client work are deductible, either expensed in the year you buy them or through Section 179. Software and subscriptions are fully deductible when they are for the business: your project management app, password manager, scheduling tool, design suite, email platform, and cloud storage. If a subscription is part personal and part business, deduct only the business share. These small monthly charges add up to real money over a year, and they are the deductions VAs most often forget because no paper receipt ever arrives.

Can a virtual assistant deduct internet, phone, and a coworking space?

Yes, in proportion to business use. If half your home internet traffic is client work, half the bill is deductible. The same split applies to a cell phone plan used for both. A coworking membership or a dedicated office is fully deductible. Keep it honest and consistent: pick a reasonable business-use percentage you could explain, apply it every month, and keep the bills. Running a client's outreach is a common VA task, and if part of your service is managing a client's cold email outreach at scale, the tools you pay for to do that are deductible business software too.

Do virtual assistants qualify for the 20% QBI deduction?

Generally yes. The qualified business income deduction lets eligible self-employed people deduct up to 20% of net business income. It phases out for specified service trades (law, accounting, consulting, and similar) above the income thresholds, but administrative and support services are not on that list. That means a virtual assistant usually keeps the full 20% even at higher income, subject to the wage and property limits that apply once you pass the annual threshold. It is one of the largest deductions available to a profitable VA, and it comes off net income after your other write-offs.

How much self-employment tax does a virtual assistant pay?

Self-employment tax is 15.3% on 92.35% of your net profit: 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare with no cap. You pay it in addition to income tax, and it is why setting aside roughly a quarter to a third of profit for taxes is sensible. Two things soften it: you deduct half of the self-employment tax on your return, and every legitimate business deduction lowers the net profit the tax is calculated on. Most VAs also owe quarterly estimated taxes rather than a single April payment.

How should virtual assistants keep records for taxes?

Keep a digital copy of every receipt and a running total per category, updated monthly instead of reconstructed in April. Photograph paper receipts, save emailed ones to a folder, and export your software and subscription charges. Then turn that pile into a categorized spreadsheet you can hand to a preparer. A self-employed expense tracker that reads receipts and exports Schedule C categories does the data entry for you, and the receipt scanner for self-employed workflow keeps the substantiation the IRS wants. Keep the records at least three years from filing, longer if income was substantially understated.

Do virtual assistants have to pay quarterly estimated taxes?

Usually, yes. If you expect to owe at least $1,000 in tax for the year, the IRS wants estimated payments four times a year rather than one lump sum in April, and skipping them can trigger an underpayment penalty even if you pay in full later. A workable rule of thumb is to set aside 25% to 30% of each payment as it comes in, then send the estimates on the quarterly due dates in April, June, September, and January. The number is easier to get right when your deductions are already tracked, because you are estimating tax on net profit, not gross revenue. This is the single planning mistake that turns a good VA year into a stressful tax bill.

None of this is a substitute for advice from a tax professional who knows your numbers, but the habit that makes any of it work is the same: capture the receipt when you spend, and let the categories build as you go.