Top Tax Deductions for Self-Employed People in the U.S.

Top Tax Deductions for Self-Employed People in the U.S.


Top Tax Deductions for Self-Employed People in the U.S.

If you’re self-employed, taxes can be a major headache — but they don’t have to be. The U.S. tax code offers a variety of deductions that can reduce your tax burden and help you keep more of your hard-earned money.

Let’s break down the most valuable deductions for freelancers, gig workers, and small business owners.

πŸ’‘ 1. Home Office Deduction

If you work from home, you may be able to deduct a portion of:

  • Rent or mortgage interest

  • Utilities

  • Internet & phone

  • Repairs and maintenance

Must be exclusively and regularly used for business.

πŸš— 2. Vehicle and Mileage Expenses

If you use your car for business:

  • You can deduct mileage ($0.655/mile in 2023)

  • Or actual expenses (gas, maintenance, depreciation)

Keep detailed logs — the IRS is strict.

πŸ“± 3. Business-Related Technology

Deduct:

  • Laptops

  • Phones

  • Software subscriptions (Zoom, QuickBooks, Canva, etc.)

If it’s used for your business, it’s likely deductible.

πŸ“’ 4. Marketing and Advertising

You can deduct money spent on:

  • Website hosting

  • Social media ads

  • Business cards

  • Branding design

🩺 5. Health Insurance Premiums

If you're self-employed and not eligible for a group plan:

  • Health, dental, and vision premiums are deductible

  • Also applies to your spouse and dependents

πŸ’Ό 6. Retirement Contributions

Reduce your taxable income by contributing to:

  • SEP IRA

  • Solo 401(k)

  • Simple IRA

Great way to save for the future and lower taxes now

🧾 7. Professional Services & Fees

Include:

  • Accounting services

  • Legal fees

  • Tax prep software

  • Business coaching or consulting

πŸͺ‘ 8. Office Supplies & Equipment

  • Furniture

  • Stationery

  • Printers, ink, paper

  • Cloud storage services

If it supports your work, it likely qualifies.

πŸ“ Conclusion

Being self-employed means you wear many hats — but you shouldn’t have to pay more in taxes than necessary.

Track your expenses, stay organized, and don’t leave money on the table. When in doubt, work with a tax professional who specializes in self-employment.


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