Every legitimate business expense lowers both your income tax and your 15.3% self-employment tax, so a missed deduction costs more for freelancers than for employees. The rule for all of them is the same: the expense must be ordinary and necessary for your business, and you need records.
Your workspace
- Home office. A space used regularly and exclusively for business. Compare the two methods with the home office deduction calculator.
- Coworking or office rent. Fully deductible when used for the business.
- Phone and internet. The business-use share of your bills.
Equipment and software
- Computers, cameras, tools and furniture. Larger purchases can often be deducted in the year you buy them rather than spread over several years.
- Software and subscriptions. Design tools, accounting software, cloud storage, website hosting, domain names.
- Office supplies. Paper, printer ink, postage.
Getting around
- Business mileage. 72.5 cents a mile for January–June 2026 and 76 cents from July 1, 2026 — or actual vehicle costs. See the 2026 mileage guide.
- Parking and tolls on business trips, deducted on top of the mileage rate.
- Business travel. Airfare, lodging and 50% of meals when you travel away from home for work.
Running the business
- Advertising and marketing. Ads, a portfolio site, business cards.
- Professional fees. Accountants, tax preparers, lawyers.
- Contract labor. Payments to other freelancers who help you.
- Platform and payment fees. Marketplace commissions and card processing fees.
- Business insurance. Professional liability, equipment insurance.
- Bank fees on a dedicated business account.
- Education that maintains or improves skills in your current business — courses, books, conferences.
- Business meals with clients — generally 50% deductible.
Deductions on your Form 1040, not Schedule C
These do not reduce self-employment tax, but they cut income tax:
- Half of your self-employment tax. Taken automatically; see the SE tax calculator.
- Self-employed health insurance. Premiums for you and your family, if you are not eligible for an employer plan. How it works.
- Retirement contributions to a SEP-IRA or Solo 401(k). Compare the two.
- Qualified business income deduction — up to 20% of your business profit. QBI explained.
What is not deductible
- Commuting from home to a regular workplace
- Personal clothing, even if you wear it to work
- Your own time or labor
- The personal-use share of anything you use for both business and life
- Fines and penalties
Keep records the easy way
Use a separate bank account and card for the business, save receipts digitally, and log mileage as you drive. The IRS can ask for proof for several years after you file.