There are plenty of other ways you spend money in connection with your self-employment, beyond the cost of cars and equipment, meals and entertainment, etc. And many of those costs can translate into tax deductions. If you are self-employed and write off business expenses on Schedule C, you don't have to worry about the 2% barrier that employees face when such expenses are listed on Schedule A.
You might be able to deduct the cost of your work wardrobe. To qualify, the clothes must be required by your job and not suitable for everyday use. Hard hats, work gloves and safety glasses qualify, for example, as do uniforms you must wear if you're a nurse, letter carrier, jockey, ballplayer, etc.
Entertainers can deduct the cost of their theatrical wardrobe, assuming it's not fitting garb off the stage. What if you have to wear a suit to work but wouldn't be caught dead in such formal attire away from the office? No deduction because, regardless of your personal opinion, the IRS says the suit is suitable for everyday use.
If you can deduct the cost of your work clothes, you can also write off the cost of keeping them clean, including laundry and dry-cleaning bills. In one case an airline pilot was permitted to claim the cost of his shoeshines. The shoes were part of the uniform and not worn off the job.
You don't have to spend thousands on cars, computers or office furniture to get Uncle Sam to help with the cost via a tax deduction. The cost of tools and equipment required in your work—a carpenter's saws, a lawyer's briefcase, a nurse's medical equipment, for example—all can qualify as tax-deductible business expenses. If the item is likely to last for more than a year, you have to depreciate it or use the expensing deduction discussed in the topic Depreciation: Section 179.
The IRS permits deduction of such professional expenses as dues to professional societies, union dues and initiation fees, and subscriptions to professional journals and trade magazines.
The cost of gifts you give in connection with your business is deductible, but Uncle Sam is something of a Scrooge here. You can't deduct more than $25 for the items you give to any one person during the year, regardless of how generous you actually are.