Self-Employed Tax Deductions You're Probably Missing
Freelancers and gig workers overpay every year by missing legitimate deductions. Here are the write-offs self-employed filers most often overlook — and how to claim them.
If you're self-employed, every legitimate deduction you claim lowers both your income tax and your self-employment tax. Yet most freelancers and gig workers leave money on the table simply because they don't know what qualifies. Here are the ones we see missed most often.
1. The home office deduction
If you use part of your home regularly and exclusively for business, you can deduct a portion of your rent or mortgage interest, utilities, and insurance. The simplified method ($5 per square foot, up to 300 sq ft) is easy; the actual-expense method can be worth more.
2. The self-employment tax deduction
You can deduct half of your self-employment tax as an adjustment to income. This one is easy to overlook because it isn't a business expense — it's an above-the-line deduction that many people filing on their own simply forget.
3. Health insurance premiums
If you pay for your own health insurance and aren't eligible for an employer plan, you can often deduct those premiums — including for your spouse and dependents.
4. Vehicle and mileage
Business miles add up fast. You can deduct either the standard mileage rate or your actual vehicle expenses — but you need a log. Track miles all year, not just at tax time.
5. The costs of running your business
These are routinely missed:
- Phone and internet (the business-use percentage)
- Software, apps, and subscriptions
- Professional services (including tax prep!)
- Continuing education and courses
- Bank and payment-processing fees
- Business use of supplies and equipment
6. Retirement contributions
A SEP-IRA or Solo 401(k) lets you set aside far more than a regular IRA — reducing this year's taxable income while building your future.
7. Quarterly estimated taxes
Not a deduction, but the mistake that costs the most: failing to make quarterly payments triggers underpayment penalties. Planning these correctly keeps more money in your pocket.
The bottom line
The tax code rewards self-employed people who keep good records and know the rules. If you're not sure you're claiming everything you're entitled to, book a consultation — a licensed pro can often find deductions that more than pay for the visit.