50 Tax Deductions Every Freelancer Should Know in 2025

Missing tax deductions is like leaving money on the table. As a freelancer, you’re entitled to deduct business expenses that employees can’t. Here’s your complete guide to maximizing deductions in 2025.

The Basics: What Can Freelancers Deduct?

Any expense that’s “ordinary and necessary” for your business is potentially deductible. The key is keeping good records and understanding what qualifies.

Home Office Deductions

1. Simplified Method

Deduct $5 per square foot of your home office, up to 300 square feet ($1,500 max). No complex calculations required.

2. Regular Method

Calculate the percentage of your home used for business and deduct that portion of:

• Rent or mortgage interest
• Utilities
• Home insurance
• Repairs and maintenance
• Property taxes

Pro tip: The regular method often yields larger deductions but requires more documentation.

Technology & Equipment

3. Computer Equipment

Laptops, monitors, keyboards, mice—all deductible when used for business.

4. Software Subscriptions

Adobe Creative Cloud, Microsoft 365, project management tools, accounting software.

5. Phone & Internet

Deduct the business-use percentage of your phone bill and internet service.

6. Website Costs

Domain registration, hosting, SSL certificates, website design.

Professional Development

7. Online Courses

Skillshare, Udemy, LinkedIn Learning—if it improves your business skills.

8. Books & Publications

Industry books, professional journals, digital subscriptions.

9. Conferences & Workshops

Registration fees, related travel, and accommodations.

10. Professional Certifications

Exam fees, study materials, renewal costs.

Marketing & Advertising

11. Social Media Advertising

Facebook ads, Google ads, LinkedIn promotions.

12. Business Cards & Branding

Logo design, business cards, branded materials.

13. Portfolio Website

Custom domain, premium themes, portfolio hosting.

Health & Insurance

14. Health Insurance Premiums

Self-employed individuals can deduct 100% of health insurance premiums.

15. Business Insurance

Professional liability, general liability, equipment insurance.

Travel & Transportation

16. Business Travel

Flights, hotels, and meals when traveling for client work.

17. Local Transportation

Mileage (67 cents/mile in 2025) or actual vehicle expenses for business trips.

18. Parking & Tolls

When meeting clients or traveling for business purposes.

Professional Services

19. Accounting & Legal Fees

CPA fees, tax preparation, legal consultations.

20. Virtual Assistants

Contracted help for administrative tasks.

21. Freelance Subcontractors

Payments to other freelancers who help with projects.

Bank & Payment Processing

22. Payment Processing Fees

PayPal, Stripe, Square fees for receiving payments.

23. Business Bank Fees

Monthly fees, wire transfer fees, merchant account costs.

Retirement Contributions

24. SEP-IRA Contributions

Contribute up to 25% of net self-employment income (max $69,000 in 2025).

25. Solo 401(k)

Higher contribution limits with both employee and employer contributions.

Commonly Missed Deductions

26-35: Office Supplies & Miscellaneous

• Printer ink and paper
• Desk and chair
• Office plants
• Coffee for clients
• Professional dues and memberships
• Business gifts (up to $25/person)
• Postage and shipping
• Storage units for business materials
• Co-working space memberships
• Business meals (50% deductible)

Record-Keeping Tips

1. Separate business and personal accounts - Makes tracking easier
2. Save all receipts - Digital copies are acceptable
3. Use accounting software - Wave, QuickBooks Self-Employed, or FreshBooks
4. Track mileage - Apps like MileIQ automate this
5. Document business purpose - Note why each expense was necessary

FAQ

Q: How much can I realistically save? A: Most freelancers save 15-25% of their deductible expenses. On $10,000 in deductions, that’s $1,500-$2,500 in tax savings.

Q: Do I need receipts for everything? A: Yes, for amounts over $75. Keep digital copies organized by category and date.

Q: Can I deduct expenses from before I officially started my business? A: Yes, startup costs up to $5,000 can be deducted in your first year.

Q: What if I’m audited? A: Good records are your best defense. Keep receipts and document the business purpose of each expense.

Conclusion

Tax deductions directly reduce your taxable income. A freelancer earning $75,000 with $15,000 in legitimate deductions pays taxes on only $60,000. That’s real money back in your pocket.

Start tracking your expenses now, even if tax season feels far away. Your future self will thank you.

Disclaimer: This article provides general information. Consult a tax professional for advice specific to your situation.