Cash withdrawals aren’t directly deductible, but if the funds are used for legitimate business purposes, they can qualify. To support deductions for 1099 taxes, ensure every expense paid from cash withdrawals is well-documented with receipts and detailed records. Accurate tracking helps prove the business nature of the expense, ensuring compliance with IRS regulations. Always maintain organized records to streamline tax filing and substantiate your claims during audits. Proper documentation is key to maximizing legitimate tax deductions related to cash transactions.