- Home office expenses
- Business-related travel expenses
- Health insurance premiums
- Retirement contributions
- Professional development and education expenses
Home Office Expenses
Freelancers can deduct a portion of their rent or mortgage, utilities, and internet expenses that are directly related to their home office. This deduction is calculated based on the percentage of the home used for business purposes.
Business-Related Travel Expenses
Freelancers can deduct expenses related to business travel, including airfare, lodging, meals, and transportation. It's important to keep detailed records and receipts for these expenses.
Health Insurance Premiums
Self-employed individuals can deduct the cost of health insurance premiums for themselves, their spouses, and dependents. This deduction can significantly reduce taxable income.
Retirement Contributions
Freelancers can deduct contributions to retirement accounts, such as a SEP-IRA or Solo 401(k). These contributions not only reduce taxable income but also help freelancers save for the future.
Professional Development and Education Expenses
Costs related to improving professional skills, such as workshops, courses, and certifications, can be deducted as business expenses. This includes books, software, and other materials necessary for professional development.