Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
What deductions are available to freelancers?
Freelancers can deduct business expenses that are ordinary and necessary for their work. This includes home office expenses, equipment, software, internet and phone costs, travel, and professional development. Keeping accurate records is essential.
How does the home office deduction work?
If you use part of your home regularly and exclusively for business, you may qualify for the home office deduction. You can use the simplified method ($5 per square foot, up to 300 square feet) or the regular method based on actual expenses.
What about self-employment tax?
Self-employed individuals pay both the employee and employer portions of Social Security and Medicare taxes, totaling 15.3%. You can deduct the employer-equivalent portion (half) of this tax when calculating your adjusted gross income.
How do I track my expenses?
Use accounting software or a dedicated business bank account to track expenses. Keep receipts and records for at least three years. Accurate tracking ensures you claim all eligible deductions and are prepared if audited.