- Home Office Deduction
- Health Insurance Premiums
- Retirement Contributions
- Office Supplies and Equipment
- Travel Expenses
- Professional Development
- Software and Subscriptions
- Advertising and Marketing
1. Home Office Deduction
Freelancers can deduct a portion of their home expenses if they use a part of their home exclusively for business. This includes rent, mortgage interest, utilities, and insurance. The space must be regularly and exclusively used for business purposes.
2. Health Insurance Premiums
Self-employed individuals can deduct the cost of health insurance premiums for themselves and their dependents. This deduction is available even if you do not itemize deductions.
3. Retirement Contributions
Contributions to retirement plans such as a SEP IRA, SIMPLE IRA, or Solo 401(k) are deductible. These plans not only reduce taxable income but also help in building a retirement nest egg.
4. Office Supplies and Equipment
Expenses for office supplies like paper, pens, and printer ink, as well as equipment such as computers and printers, are fully deductible. Keep receipts and records to substantiate these expenses.
5. Travel Expenses
Business-related travel expenses, including airfare, hotel stays, and meals, can be deducted. Ensure the travel is primarily for business purposes and maintain detailed records.
6. Professional Development
Costs associated with improving your skills, such as courses, workshops, and seminars, are deductible. This also includes subscriptions to professional journals and memberships in professional organizations.
7. Software and Subscriptions
Expenses for software and online subscriptions that are necessary for your business operations are deductible. This includes accounting software, design tools, and cloud storage services.
8. Advertising and Marketing
Money spent on advertising and marketing efforts, including online ads, business cards, and promotional materials, is deductible. These expenses help in growing your business and are fully deductible.