Tutoring Deductions: Materials, Software, Platform Fees, and the Home Office

Tutoring is a low-overhead business, but the deductions that exist are often overlooked. The most significant deductions for tutors are the home office (where most tutoring takes place, especially for online tutors), platform fees (25-40% of revenue on platforms like Wyzant), curriculum materials, and technology (laptop, tablet, webcam, whiteboard software). Vehicle mileage is a major deduction for in-person tutors who drive to student homes.

What does the deduction breakdown look like for a tutor?

What about in-person tutoring vehicle costs?

An in-person tutor who drives to student homes accumulates significant business mileage. A tutor who sees 4 students per day, driving an average of 15 miles between locations, drives 60 business miles/day, 250 days/year = 15,000 business miles.

Standard mileage deduction: 15,000 x $0.70 = $10,500. This is often the largest single deduction for in-person tutors.

The tutor must maintain a mileage log (date, destination, business purpose, miles). Driving from home to the first student and from the last student home is commuting (not deductible) UNLESS the tutor has a qualifying home office (in which case, the home is the principal place of business and all trips from home to student locations are business mileage).

Can I claim a home office deduction if I also rent a separate office space?

Yes, if you use the home office regularly and exclusively for a different business function than what happens at the rented office. The IRS requires that the home office be your principal place of business for a particular trade or a place where you regularly meet clients. If your rented office is where you see clients and your home office is where you do administrative work, the home office qualifies as long as you have no other fixed location for administrative tasks. You cannot deduct both spaces for the same function, but separate qualifying uses of each space are both deductible.

Can I deduct startup costs before my business earns any revenue?

Under IRC 195, you can immediately deduct up to $5,000 of startup costs in the year your business begins operating, with the remainder amortized over 180 months (15 years). The $5,000 immediate deduction phases out dollar-for-dollar once total startup costs exceed $50,000. Startup costs include market research, travel to investigate the business, advertising before opening, employee training before operations begin, and professional fees for setting up the entity. The key requirement is that the business must actually begin operating; costs for a business you investigated but decided not to pursue are generally not deductible. The amortization period starts in the month the business opens its doors to customers, not when you began incurring costs.

Related guides:

• Tutoring Business Entity Structure: LLC, S-Corp, and the SSTB Classification Question
• Estimated Taxes for Tutors: Platform Income, Private Clients, and the 1099-K Reporting Gap
• Retirement Plans for Tutors: Solo 401(k) for Independent Tutors and Plans for Test Prep Companies
• Worker Classification for Tutoring Companies: Employees vs. Independent Contractor Tutors

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.