Key takeaways
- Freelancers file as 1099 / self-employed, so business expenses are deductible on Schedule C.
- Deductions cut both income tax and the 15.3% self-employment tax.
- The biggest write-offs for freelancers are listed below, with what each covers.
- You need receipts and a mileage log to claim them.
Tax write-offs for freelancers
Here are the deductions freelancers most commonly claim. Each one lowers your net profit, and therefore your tax:
| Deduction | What it covers |
|---|---|
| Home office | A dedicated workspace, by square footage or the simplified method. |
| Vehicle and mileage | Business driving at the IRS standard rate, plus tolls and parking. |
| Software and subscriptions | Tools, apps, hosting, and AI subscriptions for your work. |
| Phone and internet | The business-use share of your phone and connection. |
| Supplies and equipment | Computers, gear, and consumables used for the business. |
| Business meals | Generally 50 percent deductible when there is a business purpose. |
| Marketing and website | Ads, your site, and promotional costs. |
| Professional services | Legal, accounting, and bookkeeping fees. |
| Health insurance | Self-employed health insurance premiums (on Schedule 1). |
| Retirement contributions | SEP-IRA or Solo 401(k) contributions reduce taxable income. |
The freelancer deductions worth the most
Four levers move the needle most: a home office (a percentage of your rent and utilities), business mileage at the IRS rate, self-employed retirement contributions to a SEP-IRA or Solo 401(k), and self-employed health insurance premiums. On top of your everyday expenses, these four commonly remove thousands from taxable income, so make sure none are missed.
Do not forget the QBI deduction
Most freelancers can also take the Qualified Business Income (QBI) deduction, up to 20 percent of net business income, on their Form 1040, in addition to their regular expenses. It is taken after your Schedule C, so it is easy to overlook when filing by hand but is one of the largest write-offs available.
How these deductions lower your tax
As a freelancer, your tax is based on net profit, which is your income minus these business expenses. Because both self-employment tax and income tax are calculated on that profit, every dollar you deduct is taxed at neither rate, saving most contractors roughly 25 to 40 cents on the dollar. The catch is documentation: you can only deduct what you can prove, so capturing receipts and miles through the year is what turns this list into real savings.
See what these deductions save you with our free calculators, then let NeoReceipt make sure you capture every one.