Tax Deductions for Freelancers USA: Complete List

1. Home Office: $5/sq ft (simplified, max $1,500) or actual expenses 2. Health Insurance: 100% of premiums for self, spouse, and dependents 3. Self-Employment Tax: 50% deduction on your 1040 4. Retirement Contributions: SEP-IRA (up to $69,000), Solo 401(k) 5. Equipment: computers, phones, cameras — Section 179 for full deduction 6. Software & Subscriptions: all business tools, SaaS, hosting 7. Professional Development: courses, books, conferences 8. Vehicle: 67¢/mile (2026) or actual expenses 9. Meals: 50% of business meals with clients 10. Professional Services: accountant, lawyer, virtual assistant

Many freelancers miss: • Internet and phone bills (business percentage) • Bank fees on business accounts • Business insurance premiums • Advertising and marketing costs • Domain names and hosting • Coworking space fees • Travel expenses (flights, hotels for business trips) • Startup costs (up to $5,000 in year 1)

Keep receipts for all deductions. The IRS recommends keeping records for: • 3 years from filing date (general rule) • 7 years if you claim a loss or bad debt deduction • Indefinitely for major asset purchases

Use accounting software to categorize expenses throughout the year rather than scrambling at tax time.