Freelancing gives you freedom, but it also hands you a tax return full of decisions most W-2 earners never think about. The result is usually the same: overpaying because you didn't claim what you were allowed to.
Here are seven deductions freelancers miss most often — and how to think about each one before next April.
1. Home office. If you use part of your home regularly and exclusively for business, you can deduct a share of rent, utilities, and internet. The key word is exclusively — your dining table does not count.
2. Vehicle mileage. Track every business mile. The standard mileage rate adds up fast, and most freelancers guess low.
3. Software and subscriptions. The design tool, the project manager, the cloud storage — if it's required to do your work, it's deductible.
4. Professional development. Courses, books, and conference tickets that improve the skills you use in your business qualify.
5. Health insurance premiums. Self-employed individuals can often deduct premiums above the line, lowering adjusted gross income.
6. Retirement contributions. A SEP-IRA or solo 401(k) lets you save for the future and cut this year's tax bill at the same time.
7. Quarterly estimated taxes. Not a deduction, but the single biggest reason freelancers get penalized. Pay on schedule and the surprise goes away.
Not sure which apply to you? Bring your records to a free consultation and we will sort it out together.
Want a plan, not just a guide?
Bring your questions to a free 20-minute consultation.
We will look at your situation and give you a plain-language plan — even if you decide not to move forward.