Common tax deductions for self-employed can save you big. Learn top write-offs to lower your tax bill fast.
Common Tax Deductions for Self-Employed
Meta Title: Common Tax Deductions for Self-Employed – Maximize Savings Now
Meta Description: Common tax deductions for self-employed can save you big. Learn top write-offs to lower your tax bill fast.
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Are You Missing Out on Major Tax Deductions?
If you’re self-employed, you might be paying too much in taxes. The IRS has many deductions that can dramatically cut your tax bill. But, most self-employed folks don’t know what they can write off.
This guide will show you the most common tax deductions for self-employed individuals. You’ll learn how to use them to your advantage.
Whether you’re a freelancer, gig worker, consultant, or small business owner, these tips could save you thousands.
1. Home Office Deduction
If you use part of your home exclusively for business, you can deduct a part of your rent, mortgage, utilities, and insurance.
- Must be a dedicated space, not your couch.
- You can use the simplified method ($5 per square foot) or the actual expense method.
- Even renters can claim this deduction.
This write-off is heavily scrutinized, so keep good records and photos of your workspace.
2. Internet and Phone Bills
Your business-related portion of phone and internet use is deductible.
- If you use your phone 60% for business, you can deduct 60% of your bill.
- Keep itemized statements as proof.
It adds up fast, if you’re always emailing, Zooming, or calling clients.
3. Office Supplies & Equipment ✏️
Basic tools you use for work? Yep, totally deductible.
- Pens, paper, ink, printer
- Computers, monitors, keyboards
- Software subscriptions (Adobe, Canva, etc.)
Important: Big purchases like computers might need to be depreciated over time instead of fully deducted in one year.
4. Mileage and Vehicle Use
Do you drive for business? You can deduct either the standard mileage rate or actual car expenses.
- 2025 standard mileage rate: 67 cents/mile (check IRS updates)
- Actual expenses include gas, maintenance, insurance, etc.
Pro Tip: Use an app like MileIQ to track mileage automatically.
5. Travel Expenses ✈️
If you travel for work, those costs can be written off:
- Airfare, hotels, taxis/Ubers
- 50% of business-related meals
- Conference or trade show tickets
⚠️ Just make sure the trip is primarily for business and not a vacation in disguise.
6. Business Meals ️
Meeting with a client over lunch? That’s deductible—partially.
- Only 50% of the cost is allowed
- Must be business-related and not lavish
- Keep the receipt and jot down who you met with
7. Health Insurance Premiums
If you’re self-employed and not eligible for an employer’s plan, you can deduct 100% of your health insurance premiums:
- Includes dental and vision
- Can cover your spouse and dependents too
- Must show net profit on Schedule C
8. Retirement Contributions
Saving for retirement? Good news—you can deduct contributions to:
- SEP IRA
- SIMPLE IRA
- Solo 401(k)
This reduces your taxable income while building your future nest egg. Win-win!
9. Professional Services
Hire a CPA, lawyer, or virtual assistant? You can write off those costs:
- Accounting & tax prep fees
- Legal advice related to business
- Freelancers or consultants you pay
10. Advertising and Marketing
Spending money to get more clients? You’re covered!
- Website hosting and domain
- Online ads (Google, Facebook, Instagram)
- Business cards, flyers, branded merch
Here’s a breakdown of deductible marketing expenses:
| Expense Type | Deductible? | Notes |
|---|---|---|
| Website Hosting | Yes | Must be business-only |
| Social Media Ads | Yes | Document performance |
| Business Cards | Yes | Great for networking |
11. Software Subscriptions
If you use apps or platforms for work, those count too.
- QuickBooks, Canva, Grammarly, Trello
- Zoom Pro, Slack, Dropbox
- Design or editing software
Even small monthly costs add up over the year.
12. Continuing Education
Want to improve your skills? You might be able to deduct:
- Online courses and webinars
- Trade certifications
- Business books and subscriptions
Note: The education must be directly related to your current work—not for a new career.
13. Business Insurance
If you pay for liability or professional insurance, that’s a legit deduction.
- General liability
- Professional liability (errors & omissions)
- Cyber insurance
14. Bank Fees and Interest
Fees from your business checking account or credit card?
- Monthly maintenance fees
- Payment processing fees (PayPal, Stripe)
- Business loan interest
These are all deductible if used strictly for business purposes.
Common financial deductions for freelancers:
| Item | Deductible? | Example |
| Stripe Fees | Yes | 2.9% per transaction |
| Business Credit Card | Yes | Annual fee, interest charges |
| Bookkeeping Software | Yes | QuickBooks, Wave |
15. Startup Costs
Just starting out? You can deduct some initial setup expenses:
- Legal or filing fees
- Equipment purchases
- Branding and logo design
Up to $5,000 can be deducted the first year. The rest must be spread out over time.
16. Depreciation
Big purchases that last more than a year—like furniture or tech—can be spread out.
- Spread out the deduction over several years
- Can use Section 179 to write off in year one (up to IRS limits)
Talk to a tax pro to see what method works best.
Asset depreciation cheat sheet:
| Item | Typical Life Span | Deduction Method |
| Office Furniture | 7 years | Straight-line/179 |
| Laptop/Computer | 5 years | MACRS or 179 |
| Business Vehicle | Varies | Depends on weight |
Conclusion: Keep More of What You Earn
Being self-employed means freedom—but also financial responsibility. Don’t leave money on the table. By tracking and claiming these common tax deductions, you reduce your taxable income and keep more of your hard-earned cash.
Start documenting your expenses today, and work with a professional to make sure you’re maximizing every opportunity. Your future self will thank you.
FAQs
What can I write off if I work from home full time?
You can deduct your home office, internet, phone, and business supplies if used strictly for work.
How much of my car expenses can I deduct for business?
You can deduct either the standard mileage rate or actual expenses—whichever saves more.
Can I deduct meals if I’m self-employed?
Yes, but only 50% of business-related meals are deductible.
What are startup costs I can deduct?
You can deduct up to $5,000 in first-year startup costs like legal fees and branding.
Is health insurance tax deductible for self-employed people?
Yes, if you’re not eligible for employer coverage and you show business income.
References
https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses
https://www.sba.gov/blog/self-employed-tax-deductions
https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-deductions-for-the-self-employed/L1K7gHgNo
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