Depreciation deductions: what part-time workers need to know

Published August 3, 2026 · 2 min read

Depreciation deductions explained for part-time workers, with a worked example, a checklist and the mistakes to avoid.

Why this matters for part-time workers

Part-time workers may be over-withheld or have several employers, so checking the numbers can uncover a refund.

Worked example

Here is the calculation with sample figures. Change any number in the Depreciation Tax Deduction Calculator to run your own.

Depreciation deductions: how it works

Depreciation spreads the cost of a long-lived asset over its useful life, giving a deduction each year.

Straight-line depreciation divides cost minus salvage value by the number of years.

A second example with larger figures

Scaling the inputs up shows how the result moves. Percentages stay the same, so the tax grows in proportion to the amount it is applied to.

Using the calculator step by step

1. Open the Depreciation Tax Deduction Calculator.
2. Enter your own figures on each numbered line.
3. Set the rate to the one that applies to you. Defaults are examples, not advice.
4. Read the result and the formula below it.

Key terms

Marginal rate

The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.

Taxable income

Income left after allowances and deductions, on which the tax rates are applied.

Zero rate

A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.

Tax credit

An amount subtracted directly from the tax bill, worth its full face value.

Standard rate

The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.

A quick checklist for part-time workers

1. List business assets and costs.
2. Set useful lives.
3. Calculate the yearly deduction.

Common mistakes to avoid

• Deducting the full cost of a long-lived asset in one year without an election that allows it.
• Forgetting to account for depreciation when the asset is sold.

Frequently asked questions

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.