As a freelancer, every dollar you deduct is a dollar you don't pay taxes on. With a combined income and self-employment tax rate of 25-40%, a $1,000 deduction saves you $250 to $400 in real money. Here are the ten deductions most freelancers can and should be claiming.
1. Home Office Deduction
If you use a dedicated space in your home regularly and exclusively for business, you can deduct a portion of your rent, mortgage interest, utilities, insurance, and repairs. The simplified method gives you $5 per square foot up to 300 sq ft ($1,500 max), while the regular method applies your office-to-home percentage against actual expenses. Use our Home Office Deduction Calculator to compare methods. For a deep dive, read our complete home office deduction guide.
2. Self-Employment Tax Deduction
You can deduct half of your self-employment tax from your adjusted gross income. This isn't a business expense — it's an above-the-line deduction that reduces your income tax. On $80,000 of net income, the SE tax is about $11,300, meaning you deduct roughly $5,650 from your AGI.
3. Health Insurance Premiums
If you're self-employed and not eligible for coverage through a spouse's employer, you can deduct 100% of your health, dental, and vision insurance premiums for yourself, your spouse, and dependents. This is an above-the-line deduction, so it reduces your AGI regardless of whether you itemize.
4. Retirement Contributions
Freelancers have access to powerful retirement accounts. A SEP IRA lets you contribute up to 25% of net self-employment income (max $69,000 in 2026). A Solo 401(k) allows even more flexibility with both employee and employer contributions. These contributions reduce your taxable income dollar-for-dollar.
5. Business Mileage
Every business mile you drive is worth 70 cents in deductions for 2026. Driving 10,000 business miles saves you $7,000 in deductible expenses. Keep a mileage log and use our Mileage Deduction Calculator to see your total savings.
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Computers, monitors, cameras, microphones, software subscriptions, and other tools you use for business are deductible. Equipment under $2,500 per item can be expensed immediately. Larger purchases may need to be depreciated over several years or deducted under Section 179.
7. Professional Development
Online courses, books, conferences, workshops, and certifications related to your freelance work are deductible business expenses. This includes industry conferences, skill-building courses on platforms like Coursera or Udemy, and professional association memberships.
8. Internet and Phone
If you use your internet and phone for business, you can deduct the business-use percentage. Most freelancers who work from home deduct 50-100% of their internet bill and 50-75% of their phone bill, depending on personal vs. business usage.
9. Business Insurance
Professional liability insurance (errors and omissions), general liability insurance, and business property insurance are all deductible. If you carry any insurance specifically for your freelance business, deduct the full premium.
10. Marketing and Advertising
Website hosting, domain registration, business cards, online advertising, portfolio platforms, and even the cost of a professional headshot are deductible marketing expenses. If you pay for a premium LinkedIn account, Dribbble Pro, or any platform specifically for finding or showcasing work, that's a business expense.
Bonus: The QBI Deduction
The Qualified Business Income deduction lets many freelancers deduct up to 20% of their net business income from their taxable income. This deduction has income limits and rules that vary by profession, but for many freelancers earning under $191,950 (single) or $383,900 (married filing jointly), it's an additional significant tax break.
Track Everything
The key to maximizing deductions is tracking every expense throughout the year. Use a separate business bank account and credit card, save receipts digitally, and categorize expenses monthly rather than scrambling at tax time. The more organized you are, the more deductions you'll catch — and the more money you'll keep. Calculate your overall tax burden with our 1099 Income Tax Calculator and don't forget to set aside money for quarterly payments.