Top Tax-Deductible Expenses for Freelancers & Small Business Owners
Save Up to $5,000 on Taxes! Here are the Top Deductible Expenses for freelancers
1. Self-employment tax deductions
This is a popular deduction for freelancers. The self-employment tax rate is 15.3% of net earnings, combining Social Security (12.4%) and Medicare taxes (2.9%). You can deduct Half of the self-employment tax as a business expense.
2. Home Office Deduction:
If you have a dedicated workspace within your home, you can deduct a portion of your rent or mortgage interest.
3. Office and Work Supplies:
The cost of supplies and equipment—such as laptops, printers, books, and other items—may also be deductible. You could either deduct the cost of the equipment all at once or depreciate a larger asset, like a computer, or office furniture to claim those costs over time.
4. Advertising and Marketing:
Money spent on advertising your business, both online and offline, is generally tax-deductible.
5. Professional Development:
Investing in your professional growth through courses, workshops, and conferences can yield deductible expenses. This includes mandatory continuing education for professions like CPAs & Medical Professionals.
6. Legal and Professional Services:
Fees for business-related advice or services from professionals like lawyers and accountants qualify as deductible expenses.
7. Business Travel and Meal Deduction:
Expenses for flights, hotels, taxis, and meals are deductible if they're for genuine business reasons. For business-related meals, you can only deduct 50% of the expense.
8. Mileage deduction:
If you're using your vehicle for business, you can deduct 67 cents per mile as per the IRS standard mileage rate in 2024. Remember to log your business miles carefully to maximize this deduction

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