The Complete Freelance Tax Deduction Checklist (Don’t Miss These)

I claimed $8,200 in deductions my first year. The next year, with proper tracking and awareness, I claimed $14,800. Same type of spending. Same business. The only difference was knowing what qualified as a deduction.

That $6,600 gap saved me about $1,850 in taxes. Money I threw away in year one because nobody handed me a checklist.

Here’s your checklist.

The Big Deductions (Worth $1,000+ Each)

✅ Self-Employed Health Insurance — $7,200/year (my actual)

100% of premiums for health, dental, and vision insurance. Above-the-line deduction (reduces AGI even if you don’t itemize). This is often the single largest deduction for freelancers.

Tax savings at 28%: $2,016/year

✅ Home Office — $1,400-5,000/year

Simplified method: $5/sqft up to 300 sqft = max $1,500. Actual method: business percentage of rent/mortgage, utilities, insurance, repairs. Choose whichever is higher.

Tax savings at 28%: $392-1,400/year

✅ Retirement Contributions (SEP IRA/Solo 401k) — $5,000-69,000/year

SEP IRA: up to 25% of net SE income. Solo 401(k): up to $69,000. Every dollar contributed reduces taxable income.

Tax savings at 28%: $1,400-19,320/year

✅ Half of Self-Employment Tax — ~$5,650 (on $80K income)

You can deduct 50% of your self-employment tax above the line. This is automatic when you file — just don’t miss it.

Tax savings at 28%: ~$1,582/year

✅ Software & Subscriptions — $2,800/year (my actual)

Every SaaS tool: FreshBooks ($396), Adobe ($660), Zoom ($156), hosting ($300), domains ($100), Slack, Figma, GitHub, Notion, etc.

Tax savings at 28%: $784/year

Medium Deductions ($200-1,000 Each)

✅ Internet (Business Portion) — $900/year

$150/month × 50% business use = $75/month. Adjust percentage honestly.

✅ Phone (Business Portion) — $720/year

$100/month × 60% business use = $60/month.

✅ Professional Development — $1,500/year

Online courses, books, conferences, workshops, webinars related to your profession. I spend about $1,500/year on learning.

✅ Professional Services — $375-1,500/year

CPA/accountant fees, legal fees (contract review), business license fees.

✅ Business Insurance — $500-1,500/year

Professional liability insurance, E&O insurance, general liability insurance.

✅ Office Supplies — $300-800/year

Printer ink, paper, pens, notebooks, desk accessories, printer paper.

✅ Equipment (Section 179) — varies

Computer, monitor, desk, chair, camera, microphone, lighting. Deduct the full cost in year of purchase under Section 179 (up to $1,160,000 in 2026). My $1,800 laptop was fully deducted in the year I bought it.

✅ Client Meals — 50% deductible

Meals where you discuss business with clients or prospects. Keep receipt + note who attended and business purpose. IRS requires receipts for meals over $75.

✅ Mileage — $0.70/mile (2026)

Business driving: client meetings, coworking space, office supply runs, bank trips. Track with an app or log. Don’t claim commuting to a regular office.

Smaller Deductions (Still Add Up)

✅ Bank Fees

Monthly business account fees, wire transfer fees, credit card annual fees (business cards).

✅ Postage & Shipping

Sending contracts, client deliverables, marketing materials.

✅ Advertising & Marketing

Business cards, Google Ads, LinkedIn Premium, Facebook ads, website hosting, SEO tools.

✅ Coworking Space

Drop-in fees or memberships at coworking spaces. I spend about $50/month on occasional coworking days.

✅ Travel (Business)

Flights, hotels, rental cars, rideshares for business purposes. Must be primarily for business — a trip that’s 70% business and 30% vacation allows you to deduct the business portion of travel costs.

✅ Business Gifts

Up to $25 per client per year. Holiday gifts, thank-you gifts.

✅ Continuing Education

If required to maintain a professional license or certification.

✅ Professional Memberships

Industry associations, professional organizations, Freelancers Union.

✅ Moving Expenses (If for Business)

Generally not deductible since 2018 tax reform, with military exceptions.

Commonly Missed Deductions

Based on what my CPA finds that freelancers miss most often:

1. Self-employed health insurance — The #1 miss. Worth $2,000+/year in tax savings.
2. Half of self-employment tax — Automatic if you use tax software, but sometimes missed in manual calculations.
3. Retirement contributions — Many freelancers don’t contribute, losing both the deduction AND the compounding growth.
4. Business portion of personal expenses — Internet, phone, car — many freelancers claim 0% instead of the legitimate business percentage.
5. Professional development — That $500 course and $60 book are both deductible.
6. Bank and payment processing fees — Stripe fees, PayPal fees, bank account fees — they’re business expenses.
7. Startup costs — Equipment and expenses from before your business officially started (within 1 year) can be deducted.

Deductions That Are NOT Legit (Don’t Try These)

❌ Your entire internet bill — Only the business percentage. 100% is almost never honest. ❌ Gym membership — Unless you’re a fitness professional. ❌ Regular clothing — Even if you wear it to client meetings. ❌ Commuting — Driving from home to a regular office isn’t deductible (home to client IS). ❌ Netflix/Spotify — Unless directly used for business (competitive research for a media company, background music for a studio). ❌ Pet expenses — Even if they keep you company while working. ❌ Meals alone — Your solo lunch isn’t deductible. Client meals (50%) are.

My Annual Deduction Summary

$7,560 in annual tax savings from tracking deductions properly. That’s the equivalent of earning an extra $10,500 in gross income.

The Bottom Line

Print this checklist. Review it quarterly. Run through it before filing. Every deduction you miss is money you’re giving to the IRS for free.

The difference between a freelancer who tracks deductions rigorously and one who doesn’t is $2,000-5,000 per year in taxes. Over a 10-year freelance career, that’s $20,000-50,000.

Track everything. Deduct what’s legitimate. When in doubt, track it and ask your accountant.