Question 1

Is my financial data stored on a server?

Accepted Answer

No. Smart Deductions parses your PDF or CSV entirely inside your browser using local JavaScript. Your transaction data is never uploaded, transmitted, or stored anywhere outside your device.

Question 2

What expenses can I deduct as a 1099 contractor or freelancer?

Accepted Answer

Common deductible expenses include home office costs, software subscriptions, internet and phone bills, business meals (50%), mileage and transport, professional services, insurance premiums, and equipment. Smart Deductions auto-tags these to Schedule C lines.

Question 3

Which bank statement formats does Smart Deductions support?

Accepted Answer

Smart Deductions accepts standard bank statement PDFs, CSV/OFX exports, and ZIP archives of multiple statements. It works with exports from Chase, Bank of America, Wells Fargo, Capital One, Citi, and most US banks.

Question 4

What is Schedule C and who needs to file it?

Accepted Answer

Schedule C (Form 1040) reports profit or loss from self-employment. It is required for sole proprietors, single-member LLCs, freelancers, and independent contractors — anyone who receives a 1099-NEC or earns self-employment income.

Question 5

How accurate is the automatic categorization?

Accepted Answer

The classifier uses merchant name and keyword matching against a curated rule set tuned for freelancer and small-business spending patterns. Accuracy is typically 85–95%. You can review and edit any label before exporting.

Question 6

Can I use Smart Deductions if I have an LLC?

Accepted Answer

Yes. Single-member LLCs taxed as sole proprietors (the default) file Schedule C and can use Smart Deductions directly. Multi-member LLCs and S-Corps have different filing requirements — consult a CPA for those entity types.

Question 7

Do I need to create an account?

Accepted Answer

No. Smart Deductions requires no registration, login, or payment. Open the app, upload your statement, and export your categorized CSV. All processing happens locally in your browser session.

Question 8

Is Smart Deductions free?

Accepted Answer

Yes, Smart Deductions is completely free. There are no premium tiers, usage limits, or paywalls. The entire categorization and export workflow is available at no cost.

Tax & deduction guides for freelancers

What Can a 1099 Contractor Deduct? Schedule C Guide (2026)