Top 10 Tax Write-Offs Every Freelancer Should Know
As a freelancer, every dollar you can legitimately deduct from your taxable income means lower self-employment taxes and lower income taxes. Here is the ultimate checklist of write-offs you should be tracking in 2025.
- Home Office Deduction: If you use a dedicated space exclusively for work, deduct a percentage of rent, utilities, and insurance (or use the $5/sq ft simplified method).
- Internet and Phone: Deduct the business percentage of your high-speed internet and cellular plan.
- Software and SaaS: Adobe Creative Cloud, Microsoft Office, web hosting, Zoom, Slack, and accounting software (like QuickBooks) are 100% deductible.
- Business Mileage: Using your personal car for business trips, client meetings, or running to FedEx? Track your miles (the IRS standard mileage rate usually adjusts annually around 65-67 cents per mile).
- Office Supplies & Hardware: Laptops, monitors, hard drives, pens, notebooks, and desk chairs.
- Professional Development: Online courses, ebooks, conference tickets, and coaching that directly improve your current business skills.
- State and Local Taxes (SALT): While capped individually, PTET (Pass-Through Entity Tax) elections in many states allow you to bypass the $10,000 SALT cap.
- Health Insurance Premiums: If you buy your own insurance and are not eligible for a spouse's plan, these premiums are deductible.
- Retirement Contributions: Contributions to a Solo 401(k) or SEP IRA can drastically reduce your tax bill.
- Advertising & Marketing: Facebook ads, Google Ads, website design costs, business cards, and even paying for a portfolio site template are fully deductible.
Always save your receipts. The IRS rule of thumb is that an expense must be "ordinary and necessary" in your line of work to be deducted.