The average freelancer misses thousands of dollars in deductions each year. Here are 10 write-offs that are commonly overlooked but fully legitimate for self-employed workers.
1. Self-Employed Health Insurance Premium Deduction
If you paid for your own health insurance premiums (not through an employer), you can deduct 100% of those premiums from your gross income. This is an above-the-line deduction, meaning you don't need to itemize to claim it.
This applies to premiums for yourself, your spouse, and dependents.
2. The Home Office Deduction
If you use a part of your home exclusively and regularly for business, you can deduct either: - The simplified method: $5 per square foot, up to 300 sq ft ($1,500 max) - The regular method: percentage of actual home expenses (mortgage interest, utilities, rent)
Use our free Home Office Deduction Calculator to calculate your deduction.
3. Half of Self-Employment Tax
You pay both employer and employee portions of Social Security and Medicare as a freelancer (the "self-employment tax"). The good news: you can deduct the employer half (50%) of your SE tax from your gross income.
4. Retirement Contributions (SEP-IRA or Solo 401k)
Self-employed workers can contribute to a SEP-IRA (up to 25% of net self-employment income, max $70,000 for 2026) or a Solo 401(k). Both reduce your taxable income dollar-for-dollar.
Use our Solo 401(k) Calculator to see how much you can contribute.
5. Professional Development and Education
Courses, books, subscriptions, and certifications that improve your skills for your current profession are deductible. Online courses (Coursera, Udemy), industry books, and professional memberships all qualify.
6. Software and Subscriptions
Any software you use for business — accounting software, project management tools, design apps, cloud storage — is deductible as a business expense.
7. Phone and Internet (Business Portion)
If you use your phone and internet for business, you can deduct the business-use percentage of your monthly bills. Keep records of your usage split.
8. Business Travel
Flights, hotels, and 50% of meals while traveling for business purposes are deductible. Be careful: commuting from home to a regular office is not deductible, but traveling to client meetings or conferences is.
9. Bank and Payment Processing Fees
Monthly bank fees, Stripe/PayPal transaction fees, wire transfer charges, and foreign currency conversion fees are all deductible business expenses.
10. Qualified Business Income (QBI) Deduction
The QBI deduction (Section 199A) lets many self-employed workers deduct 20% of their qualified business income. Income limits apply, and some "specified service trades" (lawyers, consultants) have phase-out rules.
This deduction is automatic — you do not need to take any special steps to claim it. Most freelancers benefit from it.
Note: Tax rules are complex and subject to change. Consult a qualified tax professional for advice specific to your situation. Our Quarterly Tax Calculator can help you estimate the impact of these deductions on your tax bill.