50 Tax Deductions Every Freelancer Should Know in 2025

As a freelancer, every dollar you save on taxes is a dollar you keep. The IRS allows numerous deductions that can significantly reduce your tax burden - but only if you know about them.

After helping thousands of freelancers with their taxes, here are the 50 most valuable deductions you need to claim.

Home Office Deductions

1. Home Office Space

If you have a dedicated workspace at home, you can deduct:

• Simplified method: $5 per square foot (up to 300 sq ft = $1,500)
• Actual expenses: Percentage of rent/mortgage, utilities, insurance

2. Home Internet

Deduct the business percentage of your internet bill. If you use it 60% for work, deduct 60%.

3. Home Phone (Business Line)

A dedicated business line is 100% deductible.

4. Office Furniture

Desks, chairs, filing cabinets - all deductible when used for business.

5. Office Supplies

Paper, pens, printer ink, and other supplies are fully deductible.

Technology & Equipment

6. Computer Equipment

Laptops, monitors, keyboards, mice - essential tools for most freelancers.

7. Software Subscriptions

• Adobe Creative Cloud
• Microsoft 365
• Project management tools (Asana, Notion)
• Accounting software (QuickBooks, FreshBooks)

8. Website Hosting & Domain

All costs to maintain your professional website.

9. Professional Tools

Industry-specific tools and equipment for your trade.

10. Phone and Phone Plan

The business percentage of your smartphone and plan.

Professional Development

11. Online Courses & Training

Courses related to your profession are deductible.

12. Books & Publications

Business books, industry publications, and research materials.

13. Professional Certifications

Exam fees and preparation materials.

14. Conferences & Events

Registration fees, travel, and lodging (within limits).

15. Coaching & Mentoring

Business coaching sessions are deductible.

Marketing & Advertising

16. Website Development

Building and maintaining your professional website.

17. Digital Advertising

Google Ads, Facebook Ads, LinkedIn Ads.

18. Business Cards & Print Materials

Design and printing costs.

19. Portfolio Development

Costs to create and showcase your work.

20. Email Marketing Tools

Mailchimp, ConvertKit, and similar services.

Travel & Transportation

21. Business Mileage

58.5 cents per mile for 2023, 67 cents for 2024.

22. Client Meetings

Travel to meet with clients, including parking and tolls.

23. Business Travel

Flights, hotels, and meals when traveling for work.

24. Uber/Lyft for Business

Rideshare costs for business purposes.

25. Vehicle Expenses

If you use actual expenses method: gas, maintenance, insurance.

Professional Services

26. Accounting Fees

Tax preparation and bookkeeping services.

27. Legal Fees

Business-related legal consultation.

28. Contract Labor

Payments to subcontractors (issue 1099s!).

29. Virtual Assistants

Hiring help for administrative tasks.

30. Consulting Services

Business consulting and advisory services.

Insurance

31. Health Insurance (Self-Employed)

100% deductible for self-employed individuals.

32. Business Liability Insurance

Protect yourself from business-related claims.

33. Professional Liability (E&O) Insurance

Essential for consultants and service providers.

34. Equipment Insurance

Coverage for your business equipment.

Banking & Finance

35. Business Bank Fees

Monthly fees, transaction fees, wire transfer fees.

36. Credit Card Processing Fees

Stripe, PayPal, Square fees for accepting payments.

37. Interest on Business Loans

Interest paid on business financing.

38. Business Credit Card Interest

Interest on cards used exclusively for business.

Retirement & Benefits

39. SEP IRA Contributions

Up to 25% of net self-employment income (max ~$66,000).

40. Solo 401(k) Contributions

Up to $66,000 per year (2023) with both employee and employer contributions.

41. SIMPLE IRA

Another retirement option for self-employed.

Other Important Deductions

42. Business Meals

50% deductible for meals with clients/prospects.

43. Professional Memberships

Industry associations and professional organizations.

44. Coworking Space

Membership fees and day passes.

45. Business Gifts

Up to $25 per recipient per year.

46. Self-Employment Tax Deduction

Deduct half of your SE tax from income.

47. Qualified Business Income (QBI) Deduction

Up to 20% of qualified business income.

48. Bad Debts

Unpaid invoices (if you use accrual accounting).

49. Startup Costs

Up to $5,000 in first-year deductions.

50. Depreciation

Spread the cost of major purchases over time.

How to Track Your Deductions

1. Use accounting software - QuickBooks, FreshBooks, or Wave
2. Keep digital receipts - Apps like Expensify or HubDoc
3. Separate business and personal - Use a dedicated business account
4. Track mileage - Apps like MileIQ or Everlance
5. Review monthly - Don’t wait until tax time

Estimated Tax Savings

Annual Income	Potential Deductions	Tax Savings (25% bracket)
$50,000	$10,000 - $15,000	$2,500 - $3,750
$100,000	$20,000 - $30,000	$5,000 - $7,500
$150,000	$30,000 - $45,000	$7,500 - $11,250

Key Takeaways

1. Track everything - Even small expenses add up
2. Keep documentation - Receipts, invoices, mileage logs
3. Separate accounts - Makes tracking much easier
4. Consider a tax professional - They often pay for themselves
5. Plan ahead - Quarterly estimated payments avoid penalties

FAQs

What percentage of my income should I save for taxes?

Most freelancers should set aside 25-30% of their income for taxes, including federal, state, and self-employment taxes.

Can I deduct my home office?

Yes! If you use a dedicated space exclusively for work, you can use either the simplified method ($5/sq ft) or actual expenses method.

Do I need receipts for all deductions?

Yes, maintain documentation for all business expenses. Digital copies are acceptable, and you should keep records for 3-7 years.

Don’t leave money on the table. Use this checklist to ensure you’re claiming every deduction you’re entitled to!