Virtual assistants run one of the leanest home-based businesses out there, which means most of the deductions available to you live in the tools you already use every day: your internet connection, your software subscriptions, and the corner of your home where you actually work.
Software and tools of the trade
Project management platforms, calendar and scheduling tools, email marketing software, bookkeeping apps, video conferencing subscriptions, and password managers used to manage client accounts are all deductible business expenses. If a tool is used for both client work and personal life, deduct only the business-use share.
Home office space
Because VA work happens entirely at a desk, the home office deduction is one of the most consistently claimable write-offs in this field — as long as the space is used regularly and exclusively for client work. Choosing between the simplified square-footage method and the regular method based on actual home expenses is covered fully in our home office deduction guide.
Internet, phone, and equipment
| Expense | How it's deducted |
|---|---|
| Home internet bill | Business-use percentage |
| Cell phone plan | Business-use percentage |
| Laptop, second monitor, headset, webcam | Often fully deductible the year of purchase |
| Standing desk or ergonomic chair used exclusively for work | Fully deductible |
For larger equipment purchases like a new laptop, see our comparison of Section 179 vs. bonus depreciation to understand how immediate expensing works.
Training and certifications
- Courses in specialized VA skills — bookkeeping, social media management, e-commerce platform administration, or graphic design.
- Software certifications required by higher-paying clients (project management platforms, CRM systems, accounting software).
- Membership in VA professional communities or associations.
Contractor payments if you subcontract work
If your VA business has grown enough that you subcontract tasks to other freelancers, those payments are deductible business expenses, and you may need to issue a Form 1099-NEC to any contractor you pay a meaningful amount over the course of the year.
Self-employment tax and quarterly payments
VA income is subject to self-employment tax, and because clients rarely withhold anything from your invoices, quarterly estimated payments are usually required to avoid a penalty. Start with our self-employment tax guide and quarterly estimated taxes guide.
Frequently asked questions
Can I deduct a coworking space membership if I mostly work from home?
Yes, coworking memberships are deductible business expenses regardless of how often you use your home office instead — the two are not mutually exclusive.
What if clients pay me through PayPal or Venmo instead of direct deposit?
The payment method doesn't change your tax obligation — all client payments are taxable income and should be tracked, regardless of whether the platform issues you a 1099.
Are courses to learn a completely new skill, like starting a new service line, deductible?
Education that maintains or improves skills in your existing business is deductible; education that qualifies you for a brand-new trade or business is generally treated differently and may not be immediately deductible. Keep this distinction in mind when investing in new certifications.