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Self-Employed Tax Deductions: What Freelancers and Gig Workers Miss
The short answer: the most commonly missed write-offs are business miles (72.5¢ each), the home office ($5 per square foot up to 300), health insurance premiums, retirement contributions (up to $72,000 for 2026), the 20% business income deduction, half of self-employment tax, and the business share of your phone and internet.
2026 deduction checklist
| Deduction | Key 2026 detail | Lowers |
|---|---|---|
| Business mileage | 72.5¢ per mile, with a log | Income + SE tax |
| Home office (simplified) | $5/sq ft, up to 300 sq ft ($1,500); regular and exclusive use | Income + SE tax |
| Phone and internet | Business-use share | Income + SE tax |
| Software, tools, equipment | Used for your work | Income + SE tax |
| Education | Courses that maintain or improve current skills | Income + SE tax |
| Business meals | Generally 50%, with a business purpose | Income + SE tax |
| Health insurance premiums | Self-employed, not eligible for an employer plan | Income tax |
| Retirement (SEP IRA, Solo 401(k)) | Up to $72,000 total for 2026, based on profit | Income tax |
| Half of self-employment tax | Automatic on your return | Income tax |
| Qualified business income (QBI) | Up to 20% of business profit; $400 minimum with $1,000+ QBI | Income tax |
| Qualified tips (drivers, other tipped work) | Up to $25,000, 2025–2028 | Income tax |
Sources: IRS home office, IRS mileage, 2026 retirement limits.
Why it matters twice
Business expenses on Schedule C cut both income tax and the 15.3% self-employment tax. A $1,000 expense can save $250–$400 in total tax. Deductions like health insurance and retirement cut income tax only.
Keep records
A deduction you can't prove is one you lose. Keep receipts (photos are fine), a mileage log, and a separate account for business spending. See what you'll owe with how much to set aside for taxes, and drivers can check which miles count and the tips deduction.
Tools that track deductions for you
Scans your purchases for write-offs freelancers and gig workers often miss.
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FAQ
What can self-employed people write off?
Ordinary and necessary business expenses such as mileage, a home office, phone and internet, software, equipment and education, plus health insurance, retirement contributions and the QBI deduction.
How much is the home office deduction?
With the simplified method, $5 per square foot of space used regularly and exclusively for business, up to 300 square feet ($1,500).
Do deductions lower self-employment tax?
Business expenses on Schedule C lower both income tax and self-employment tax. Health insurance, retirement and the QBI deduction lower income tax only.
Sources: IRS simplified home office · IRS 2026 mileage rates · 2026 SEP and Solo 401(k) limits · IRS 2026 inflation adjustments. General information for planning, not tax, legal or financial advice.