What Can Freelancers Claim as Tax Deductions?

If you use part of your home exclusively for business, you can deduct it. The simplified method gives you $5 per square foot up to 300 sq ft (max $1,500). The actual expense method calculates the business percentage of rent, utilities, internet, and insurance — usually larger if you have a real dedicated workspace.

Every business mile you drive (client meetings, supply runs, etc) is worth $0.67 in 2025. 200 business miles a month = $1,608/year deduction. Track it via app or odometer log — the IRS requires a written record, not estimates.

All business software is fully deductible: Adobe Creative Cloud, Notion, Slack, Figma, hosting, domain names, project management tools. Even a $99 productivity app for your business workflow.

Self-employed health insurance is 100% deductible above the line. This includes medical, dental, vision, and Medicare premiums for you, your spouse, and dependents. The deduction can't exceed your net self-employment income.

A SEP-IRA lets self-employed people deduct up to 25% of net self-employment income (with a 2025 cap of $70,000). This is a double-win: you save for retirement AND reduce taxable income today. Solo 401(k) is an alternative with similar limits but more flexibility.

Laptops, monitors, cameras, microphones, lighting, drawing tablets — anything used for your business is deductible. Section 179 lets you deduct the full cost in the year of purchase, instead of depreciating over years.

Courses, books, workshops, conferences — anything that develops or maintains your professional skills is deductible. Note: education that qualifies you for a new profession is NOT deductible (e.g. law school for a designer).

Business meals with clients or for business discussions are 50% deductible. Marketing and advertising — Facebook ads, SEO services, business cards, your portfolio site — are 100% deductible.

TaxClutch's AI categorizes every expense you log into the right tax bucket — home office, mileage, software, etc — and applies the right deductibility rule (100% vs 50% vs business percentage). You get the full deduction without having to memorize the IRS rulebook.