Top Tax Deductions for Freelancers and the Self-Employed

TaxesAll

Apr 22

When you're self-employed, every dollar counts, and so does every deduction. Unlike traditional employees, freelancers and small business owners have access to a wide range of tax write-offs. Knowing what qualifies as a business expense can help lower your taxable income and save you big when tax time rolls around.

Here are some of the most common deductions you should be tracking:

1.Home Office Deduction

If you work from home, you may be eligible to deduct a portion of your housing costs. To qualify, the space must be used exclusively and regularly for your business.

You can deduct a percentage of:

Rent or mortgage interest
Utilities (electricity, water)
Property taxes
Homeowners insurance

Tip: Use the simplified method (up to 300 sq ft at $5/sq ft) or actual expenses based on square footage.

2. Health Insurance Premiums

If you pay for your own health insurance and aren't eligible for an employer plan (like through a spouse), your premiums may be 100% deductible.

This includes:

Medical, dental, and vision insurance
Premiums for your spouse or dependents

This deduction reduces your adjusted gross income, not your self-employment tax.

3. Phone & Internet (Business Portion Only)

If you use your cell phone or home internet for work, you can deduct the business-use percentage. For example:

If you use your phone 60% for business, you can deduct 60% of your bill.
Keep a usage log if your work/personal use is mixed.

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4. Business Travel & Meals

Traveling for a client meeting, conference, or business event? Those expenses are deductible if they’re ordinary and necessary.

You can write off:

Flights, hotels, rental cars, and taxis
50% of meals while traveling for business
Tips, parking, baggage fees

Save receipts and note the purpose of the trip for your records.

5. Continuing Education

If you take courses or training to improve your skills or maintain a certification related to your work, it's deductible.

Examples:

Skill-building workshops or masterclasses
Online business courses
Licensing renewal fees

Just make sure the course is related to your current business or trade.

Bonus Deductions to Keep in Mind

Business insurance
Software subscriptions (like Canva, QuickBooks, Zoom)
Professional services (legal, accounting, consulting)
Marketing and advertising
Office supplies and equipment
Bank fees and payment processor charges

Pro Tip:

Track expenses in real time.
Use an app or spreadsheet to log your deductions as they happen. And always keep digital receipts—this helps in case of an audit and ensures you don’t forget anything at tax time.
These deductions can add up quickly and significantly reduce what you owe the IRS. Understanding and tracking your write-offs is one of the best ways to take control of your business finances, and keep more of what you earn.