The average freelancer overpays by $3,000–$7,000/year simply by not tracking deductions. Here's what you can legitimately write off.
Every business mile = $0.67 off your taxes. A driver doing 15,000 miles/year saves $10,050 in taxable income. Log every trip with an app.
The business percentage of your phone bill is deductible. If you use your phone for 40% business, deduct 40% of your annual phone cost.
Same logic as phone — the business percentage of home internet is deductible. Usually 20–40% for freelancers.
Adobe Creative Cloud, Microsoft 365, QuickBooks, project management tools — if you pay for it for work, it's deductible.
Either use the simplified method ($5/sq ft up to 300 sq ft = $1,500 max) or the regular method (actual costs × percentage of home used). Dedicated room required for the regular method.
Computers, monitors, keyboards, desks, chairs — under $2,500 per item can be deducted immediately under Section 179.
Courses, books, conferences, certifications that maintain or improve skills for your current work. Not if they qualify you for a new career.
Self-employed health insurance deduction — you can deduct 100% of health, dental, and long-term care insurance premiums for yourself and your family from SE income.
Up to $66,000 in 2026 can go into a SEP IRA or Solo 401k. Reduces both income and SE tax.
Business meals with clients or contractors are 50% deductible. Must have a clear business purpose documented.
Business bank account fees, credit card annual fees, PayPal fees — all deductible as bank charges.
CPE credits, professional certifications, license renewals — if it keeps you licensed or current, it's deductible.
WeWork, Regus, or any dedicated workspace rental. A coffee shop doesn't count, but a dedicated desk does.
Professional liability, general liability, business owner's policy — all fully deductible business expenses.
Website hosting, domain fees, Google Ads, Facebook Ads, business cards, LinkedIn Premium — all deductible.
FreshBooks categorizes expenses and calculates deductions for you at tax time.
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