What can I write off as a freelancer?

Ordinary and necessary business expenses: a home office, equipment and software, the business-use share of your phone and internet, mileage or vehicle costs, supplies, business insurance, advertising, professional development, and fees you pay to platforms, banks, and contractors. Self-employed health insurance premiums and retirement contributions are deductible too, as adjustments to income.

Do deductions lower self-employment tax?

It depends on the type. Business expenses on Schedule C reduce your net profit, which lowers both self-employment tax and income tax. Above-the-line adjustments like self-employed health insurance, retirement contributions, and the QBI deduction lower income tax only — they do not reduce self-employment tax.

Can I deduct a home office if I rent?

Yes. The home office deduction is available to renters and owners alike, as long as you use the space regularly and exclusively for business. The simplified method is $5 per square foot up to 300 square feet (a $1,500 maximum); the actual-expense method lets you deduct a percentage of rent, utilities, and insurance based on the office's share of your home.

Do I need receipts for business deductions?

Yes. The IRS expects you to substantiate deductions with records — receipts, invoices, bank and card statements, and a contemporaneous mileage log for vehicle use. Keeping a separate business bank account and card makes this far easier and more defensible if you're audited.

How much can I deduct for my car?

You can use the standard mileage rate (70 cents per business mile for 2025) multiplied by your business miles, or deduct the actual business-use share of your vehicle costs. You must keep a log of business miles either way, and commuting between home and a regular workplace doesn't count.

Freelancer tax deductions: the complete checklist

Every legitimate deduction you take lowers your taxable profit — and for most write-offs, that cuts both your income tax and your 15.3% self-employment tax. Miss them and you're simply overpaying. Here's the checklist, what actually qualifies, and the one distinction that trips everyone up.

Last reviewed: June 2026 · Mileage rate shown for 2025

First, the distinction that matters most

Not all deductions work the same way, and knowing the difference is worth real money:

Business expenses (on Schedule C) reduce your net profit. Because both self-employment tax and income tax are figured on that profit, these deductions cut both taxes — the most valuable kind.
Adjustments to income — self-employed health insurance, retirement contributions, and the QBI deduction — reduce your income tax only. They do not lower self-employment tax.

So a dollar of deductible software saves you more tax than a dollar of health-insurance premium, even though both are deductible. Keep that in mind as you go down the list.

The checklist — expenses that cut both taxes

Home office

If you use part of your home regularly and exclusively for business, you can deduct it — as a renter or an owner. The simplified method is $5 per square foot up to 300 sq ft ($1,500 max); the actual-expense method deducts your office's share of rent, utilities, and insurance (filed on Form 8829).

Equipment & software

Computers, monitors, tools, and software subscriptions used for work. Many items can be fully deducted the year you buy them under Section 179 rather than depreciated over time.

Phone & internet

Deduct the business-use percentage of your phone and internet bills. If your phone is 60% work, 60% of the bill is deductible — be honest and consistent.

Vehicle & mileage

Use the standard mileage rate (70¢ per business mile for 2025) times your business miles, or deduct the actual business-use share of vehicle costs. Either way you need a mileage log, and ordinary commuting doesn't count.

Supplies, insurance, fees & marketing

Business supplies and materials, business/liability insurance, platform and payment-processor fees, bank fees, advertising and marketing, and fees you pay to subcontractors are all ordinary business expenses.

Professional development

Courses, certifications, books, and conferences that maintain or improve the skills of your current business are deductible (education that qualifies you for a new career generally isn't).

Startup costs

New businesses can typically deduct up to $5,000 of startup costs in the first year, with the rest amortized — so the money you spent getting off the ground isn't lost.

Adjustments that cut income tax

Self-employed health insurance

Premiums for yourself, your spouse, and dependents are deductible as an adjustment to income (limited to your net business profit). It lowers income tax but not self-employment tax.

Retirement contributions

A SEP-IRA or solo 401(k) lets you shelter a large share of profit from income tax while building your own retirement — the benefit no employer is providing now. Limits are based on your net earnings.

The QBI deduction

Most freelancers can deduct up to 20% of qualified business income under Section 199A before income tax. Above $197,300 (single) or $394,600 (married filing jointly) for 2026, specified service businesses begin to phase out.

Half of your self-employment tax

You automatically deduct half of the self-employment tax you pay when figuring income tax — no action required, but worth knowing it's there.

Keep records the IRS will accept

Separate the money. A dedicated business bank account and card make every deduction easy to prove and keep personal spending out of the picture.
Save receipts and statements. Keep digital copies; a shoebox is better than nothing, a folder of scans is better still.
Log mileage as you go. A contemporaneous log (date, miles, purpose) is what holds up — reconstructing it in April doesn't.

Common mistakes to avoid

Don't deduct your commute, the personal portion of mixed-use expenses, everyday clothing (unless it's a required uniform), or 100% of business meals (generally 50%, and they must have a business purpose). When in doubt, the test is "ordinary and necessary" for your business.

See what your deductions save you

Our free Quarterly Tax Estimator includes interactive deduction suggestions — enter a home office, mileage, health premiums, or retirement contributions and watch your estimated tax drop in real time, with each one correctly applied to self-employment tax or income tax. Nothing leaves your browser.

Estimate my taxes →

Frequently asked questions

What can I write off as a freelancer?: Ordinary, necessary business costs: home office, equipment and software, the business share of phone and internet, mileage, supplies, insurance, advertising, professional development, and platform/bank/contractor fees — plus health insurance and retirement contributions as adjustments to income.
Do deductions lower self-employment tax?: Business expenses on Schedule C lower both self-employment tax and income tax. Adjustments like health insurance, retirement contributions, and the QBI deduction lower income tax only.
Can I deduct a home office if I rent?: Yes — renters and owners both qualify if the space is used regularly and exclusively for business. Simplified method: $5/sq ft up to 300 sq ft ($1,500 max).
Do I need receipts?: Yes — receipts, statements, and a contemporaneous mileage log. A separate business account makes substantiation far easier.
How much can I deduct for my car?: The standard mileage rate (70¢/mile for 2025) times business miles, or the actual business-use share of vehicle costs. Keep a log; commuting doesn't count.