- Home office expenses
- Business-related travel costs
- Health insurance premiums
- Retirement contributions
- Professional development and education expenses
Home Office Expenses
As a freelancer, you can deduct a portion of your rent or mortgage, utilities, and internet costs that are directly related to your home office. Keep detailed records and calculate the percentage of your home that is used for business purposes.
Business-Related Travel Costs
If you travel for work, whether it's to meet with clients or attend conferences, you can deduct expenses such as transportation, lodging, and meals. Be sure to keep receipts and document the business purpose of each trip.
Health Insurance Premiums
Freelancers who are not eligible for employer-sponsored health insurance can deduct their health insurance premiums. This deduction can also include premiums for dental and long-term care insurance.
Retirement Contributions
Contributions to retirement accounts, such as a SEP IRA or Solo 401(k), are tax-deductible for freelancers. This not only helps reduce your taxable income but also allows you to save for the future.
Professional Development and Education Expenses
Investing in your skills and knowledge as a freelancer can also be tax-deductible. This includes expenses for workshops, courses, books, and subscriptions related to your business. Keep records of these expenses and how they directly benefit your freelance work.