If you are currently an independent contractor**, then you deduct your expenses when you actually pay them and your income when you actually receive it.
If this is your first time as self-employed, then since you have no income to deduct your expenses against, this is what you do:
You can deduct up to $5000 of "start up costs" as an expense in the first year that you actually have income. If you have more than $5000 of start up costs, part can be deducted in year one and the rest must be amortized (spread out) over 15 years, based on a particular formula as described here, https://www.irs.gov/publications/p535
**And a cash basis taxpayer. Everyone is a cash basis taxpayer unless you aren't, but setting up the other method requires an accountant and you would already know if you had done it.
