- Home office expenses
- Health insurance premiums
- Business-related travel expenses
- Professional development and education costs
- Retirement contributions
Home Office Expenses
Freelancers can deduct expenses related to their home office, such as rent, utilities, and internet costs, based on the percentage of their home used for business purposes.
Health Insurance Premiums
Self-employed individuals can deduct the cost of health insurance premiums for themselves, their spouses, and dependents, potentially saving a significant amount on taxes.
Business-Related Travel Expenses
Freelancers can deduct expenses for business-related travel, including mileage, airfare, lodging, and meals, as long as they are directly related to their freelance work.
Professional Development and Education Costs
Costs associated with improving skills or staying up-to-date in the field, such as workshops, courses, and professional memberships, can be deducted as business expenses.
Retirement Contributions
Freelancers can save for retirement while reducing their tax bill by contributing to a retirement account, such as a SEP-IRA or Solo 401(k), and deducting those contributions from their taxable income.