Top Freelance Tax Deductions for 2024
- Home office expenses
- Business supplies and equipment
- Professional development and education
- Travel and transportation
- Health insurance premiums
- Retirement contributions
- Marketing and advertising
Home Office Expenses
Freelancers can deduct expenses related to their home office, such as rent, utilities, internet, and phone bills, based on the percentage of their home used for business purposes.
Business Supplies and Equipment
Costs for necessary supplies, software, and equipment used for freelance work, such as computers, printers, and office furniture, can be deducted as business expenses.
Professional Development and Education
Freelancers can write off expenses for courses, workshops, conferences, and other educational resources that help them improve their skills and stay updated in their field.
Travel and Transportation
Business-related travel expenses, including mileage, public transportation, and accommodation, can be deducted, as well as meals and entertainment while on business trips.
Health Insurance Premiums
Freelancers who are not eligible for employer-sponsored health insurance can deduct the cost of their health insurance premiums, including those for their spouse and dependents.
Retirement Contributions
Contributions to retirement accounts, such as a SEP-IRA or Solo 401(k), are tax-deductible for freelancers, helping them save for the future while reducing their taxable income.
Marketing and Advertising
Expenses related to promoting and marketing freelance services, such as website hosting, advertising, and promotional materials, can be deducted as business expenses.