15 tax deductions freelancers often miss
Freelancers can deduct ordinary and necessary business costs on Schedule C. That covers software, equipment, home office, mileage, internet, phone, insurance, marketing, fees and more. Half of self-employment tax, health insurance and retirement contributions come off too. Personal costs don't count, and you need records.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- The test. Common in your field and helpful for your work
- Where. Business costs go on Schedule C
- Must have. Receipts, logs and a business reason
What can you deduct?
The IRS test is that a cost is ordinary and necessary for your trade. It doesn't need to be essential, but it has to be normal and helpful.
- Software and subscriptions
- Computer, camera and other equipment
- Home office, if you qualify
- Business share of your phone
- Business share of internet
- Business mileage, parking and tolls
- Business travel, including flights and hotels
- Client meals, usually at 50%
- Advertising, website and hosting
- Payment processing fees
- Contractors you hire
- Business insurance
- Tax prep and bookkeeping fees
- Courses that maintain or improve your current skills
- Business licenses and professional dues
What comes off outside Schedule C?
A few deductions don't reduce your business profit, but they do cut income tax.
- Half of your self-employment tax
- Self-employed health insurance
- Retirement contributions, such as a SEP-IRA or solo 401(k)
- The QBI deduction, up to 20% of qualified business income
What usually isn't deductible?
- Your regular commute
- Normal clothing, even if you only wear it for work
- Gym memberships and everyday grooming
- Personal meals
- Tickets and other entertainment
- Courses that qualify you for a new line of work
What about mixed-use costs?
Only the business share counts. If you use your phone 60% for work, deduct 60%, and be able to explain how you got there. A rough, consistent method is better than 100% with nothing behind it.
How do you keep track?
Use a separate card for business, and photograph receipts as you go. Review your categories monthly. A year of small costs is easy to forget, and every $100 you miss can cost you around $25 to $35 in tax. If you're near the end of the year, read what to do before December 31.
Sources
- IRS: Guide to business expense resources
- IRS: About Schedule C
- IRS: Self-employed individuals tax center
General information, not tax advice for your situation.
Can I write off my car payment as a freelancer?
Not the payment itself. You deduct mileage, or the business share of actual costs, including depreciation and interest.
Can I deduct my clothes for work?
Only if they're required and not suitable for everyday wear, like uniforms or safety gear.
Do I need an LLC to take business deductions?
No. A sole proprietor can take the same deductions on Schedule C.
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