15 Self-Employment Deductions You Might Be Missing
Freelancers and self-employed workers often miss valuable deductions. Here are 15 commonly overlooked deductions that could save you thousands.
Stop Leaving Money on the Table
As a self-employed individual, every legitimate business deduction directly reduces your taxable income — and your self-employment tax. Yet many freelancers and contractors miss out on thousands of dollars in deductions simply because they don't know they qualify. Here are 15 commonly overlooked deductions.
1. Home Office Deduction
If you use a dedicated space in your home regularly and exclusively for business, you can deduct a portion of your rent/mortgage, utilities, and insurance. The simplified method allows $5 per square foot, up to 300 sq ft ($1,500 max).
2. Vehicle and Mileage
Business-related driving is deductible. For 2026, the IRS standard mileage rate is 67 cents per mile. Keep a mileage log — apps like MileIQ make this easy.
3. Self-Employment Tax Deduction
You can deduct the employer-equivalent portion of your self-employment tax (50%) when calculating your adjusted gross income. This is an above-the-line deduction.
4. Health Insurance Premiums
If you're self-employed and not eligible for an employer plan, you can deduct 100% of your health, dental, and long-term care insurance premiums.
5. Retirement Contributions
Contributions to a SEP-IRA, SIMPLE IRA, or Solo 401(k) are deductible. A SEP-IRA allows up to 25% of net self-employment income (up to $69,000 for 2026).
6. Professional Development
Courses, workshops, certifications, books, and conferences that maintain or improve your skills are deductible.
7. Software and Subscriptions
Business software, SaaS subscriptions, cloud storage, and professional tools are all deductible. This includes design tools, accounting software, project management apps, and more.
8. Internet and Phone
The business-use percentage of your internet and phone bills is deductible. If you use your phone 60% for business, 60% of the bill is deductible.
9. Business Insurance
Professional liability insurance, general liability, errors and omissions — all deductible business expenses.
10. Marketing and Advertising
Website hosting, domain names, online advertising, business cards, and marketing materials are all deductible.
11. Legal and Professional Fees
Fees paid to attorneys, accountants, tax preparers, and consultants for business purposes are deductible.
12. Bank Fees
Business bank account fees, credit card processing fees, and PayPal/Stripe transaction fees are deductible.
13. Office Supplies and Equipment
Computers, monitors, desks, chairs, printers, paper, and other office supplies. Items over $2,500 may need to be depreciated.
14. Travel and Meals
Business travel (flights, hotels, rental cars) is fully deductible. Business meals are 50% deductible when directly related to business discussions.
15. Coworking Space
If you rent a desk or office at a coworking space, those costs are fully deductible as rent expense.
The Takeaway
Tracking these deductions throughout the year can save you thousands. The key is maintaining good records — save receipts, use a dedicated business bank account, and track mileage consistently.
Not sure which deductions apply to your situation? Our self-employed tax filing service includes thorough deduction analysis to maximize your savings. Book a free consultation to get started.