Complete Freelancer Deduction Guide

Maximize your tax savings with this comprehensive guide to freelancer deductions. Don't leave money on the table!

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Deductible Business Expenses

Here are the most common tax deductions available to freelancers and self-employed individuals.

Home Office Deductions

Deductions for your dedicated workspace

Simplified Method

$5 per square foot (up to 300 sq ft, max $1,500)

💡 Easiest method, good for small home offices

Actual Expense Method

Percentage of actual home expenses

💡 Better for large offices or high home expenses

Utilities (if using actual method)

Business percentage of electricity, gas, water

💡 Keep all utility bills for the year

Rent (if using actual method)

Business percentage of rent payments

💡 Cannot deduct if you own the home

Vehicle & Travel

Business use of vehicles and travel expenses

Mileage Deduction

65.5¢ per business mile (2023 rate)

💡 Keep detailed mileage log with business purpose

Actual Vehicle Expenses

Gas, repairs, insurance (business percentage)

💡 Cannot combine with mileage method

Business Travel

Airfare, hotels, meals (50% for meals)

💡 Must be away from tax home overnight

Local Transportation

Uber, taxi, parking for business meetings

💡 Save all receipts and note business purpose

Equipment & Supplies

Business equipment and office supplies

Computer & Software

Laptops, software, apps used for business

💡 Deduct or depreciate based on cost

Office Supplies

Paper, pens, printer ink, etc.

💡 Ordinary and necessary for your business

Professional Equipment

Cameras, tools, industry-specific equipment

💡 Must be used primarily for business

Furniture

Desk, chair, filing cabinets

💡 Depreciate over several years if expensive

Professional Services

Services that support your business

Professional Development

Courses, seminars, industry conferences

💡 Must improve skills for current business

Professional Memberships

Industry associations, professional organizations

💡 Must be directly related to your business

Legal & Professional Fees

Attorney, accountant, consultant fees

💡 Business-related services only

Business Insurance

Professional liability, business property insurance

💡 Personal insurance is not deductible

Communications

Business communication expenses

Internet Service

Business percentage of internet costs

💡 Calculate percentage used for business

Phone Service

Business phone line or business use percentage

💡 First phone line to home is not deductible

Website & Hosting

Domain registration, web hosting, website design

💡 Business websites only

Marketing & Advertising

Business cards, ads, promotional materials

💡 Must be reasonable and promote your business

Common Deduction Mistakes to Avoid

Avoid these common errors that could trigger an audit or reduce your deductions.

❌ Personal expenses mixed with business

Solution: Keep separate accounts and detailed records

❌ No documentation or receipts

Solution: Save all receipts and maintain expense logs

❌ Claiming personal use items

Solution: Only deduct business percentage of mixed-use items

❌ Not tracking mileage properly

Solution: Use mileage apps or maintain detailed written logs

Record Keeping Best Practices

📋 Essential Documentation

• Keep all receipts and invoices for business expenses
• Maintain a mileage log for vehicle deductions
• Save bank statements and credit card statements
• Document business purpose for all expenses
• Keep records for at least 3-7 years

📱 Recommended Apps

• QuickBooks Self-Employed
• Expensify
• Receipt Bank
• MileIQ (for mileage tracking)

📊 Tax Organization

• Separate business and personal expenses
• Categorize expenses monthly
• Reconcile accounts regularly
• Prepare documents for tax prep early

Ready to Maximize Your Deductions?

Use our deductions calculator to estimate your tax savings, or get personalized advice from a licensed CPA.

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