12 Tax Deductions Freelancers Commonly Miss

Every dollar you legitimately deduct reduces both income tax and, for business expenses, self-employment tax. The rule is that an expense must be ordinary and necessary for your business. These twelve are the ones freelancers most often forget.

1. Home office

If you use part of your home regularly and exclusively for business, you can deduct it. The simplified method gives $5 per square foot, up to 300 square feet, a maximum of $1,500. The regular method uses actual expenses in proportion to your office space and can be larger, but requires more records.

2. Self-employed health insurance

Premiums you pay for yourself, your spouse and dependents can be deducted if you had net profit and were not eligible for an employer plan. It reduces income tax, not self-employment tax.

3. Half of your self-employment tax

This automatic adjustment is easy to miss if you prepare returns by hand. Good tax software calculates it for you.

4. Retirement contributions

Contributions to a Solo 401(k) or SEP IRA are deductible and often the biggest single tax-saving move available to freelancers.

5. Business mileage

Driving to clients, meetings and supply runs counts, but commuting from home to a regular workplace does not. The standard mileage rate was 70 cents per mile for 2025, and the IRS announces the rate each year. Keep a log with date, destination, purpose and miles.

6. Equipment and software

Computers, cameras, desks, subscriptions and apps are deductible. Under the de minimis safe harbor, items costing $2,500 or less per invoice or item can generally be deducted in the year you buy them.

7. Phone and internet

Deduct the percentage used for business. If you use your phone half the time for work, deduct half of the bill.

8. Professional services and education

Accounting, legal fees, contracts, and courses or books that maintain or improve skills for your current business are deductible. Training for an entirely new profession is not.

9. Marketing and website costs

Domain names, hosting, advertising, design work, business cards and portfolio sites all count.

10. Bank and payment fees

Processing fees, platform commissions and business account charges are deductible and easy to overlook because they are deducted before payouts arrive.

11. Business insurance

Professional liability, general liability and similar policies for the business are deductible.

12. Travel and meals

Travel away from your tax home for business is deductible, including transportation and lodging. Business meals are generally limited to 50% of the cost.

Also check: the qualified business income deduction

Many sole proprietors can deduct up to 20% of qualified business income, which is taken on your income tax return and not on Schedule C.

Keep records

Save receipts, invoices and bank statements for at least three years after filing. A simple spreadsheet or bookkeeping app, updated monthly, is enough.

Frequently asked questions

Can I deduct personal expenses that I partly use for work?

Only the business share, and you must be able to document how you calculated it.

Is it safe to claim the home office deduction?

Yes, if you qualify and keep records. The key tests are regular and exclusive business use.