- Home office expenses
- Business-related travel expenses
- Health insurance premiums
- Retirement contributions
- Professional development and education expenses
Home Office Expenses
Freelancers can deduct expenses related to their home office, such as utilities, internet, and rent or mortgage interest. It's important to keep detailed records and only deduct the portion of these expenses that directly relate to the home office.
Business-Related Travel Expenses
Freelancers can deduct travel expenses incurred for business purposes, including mileage, airfare, lodging, and meals. Keeping thorough records and distinguishing between personal and business travel is crucial for accurate deductions.
Health Insurance Premiums
Self-employed individuals can deduct health insurance premiums for themselves, their spouses, and dependents. This deduction can significantly reduce taxable income and is an important consideration for freelancers.
Retirement Contributions
Contributions to retirement accounts, such as a SEP-IRA or Solo 401(k), are tax-deductible for freelancers. It's essential to maximize these contributions to save for the future while also reducing tax liability.
Professional Development and Education Expenses
Freelancers can deduct expenses related to professional development and education, including workshops, courses, and industry conferences. Staying current and improving skills can be financially beneficial through tax deductions.