25 Tax Deductions for Freelancers

Freelancers often work hard for their earnings. If they keep good financial records and prepare their tax returns correctly, freelancers can often tap into a number of deductions that can help lower their taxes and allow them to keep more of their hard-earned income.

Self-Employed Tax Deductions You Won’t Want to Miss

When considering whether an expense is deductible or not, you may want this rule of thumb in mind: The Internal Revenue Service (IRS) guideline for freelancer tax deductions is that expenses must be ordinary and necessary.

Home Office

One of the most common deductions for freelancers, in order to claim a home office on your taxes, the designated space must be used regularly and exclusively for business operations and must be the principal location where business is conducted.

Office Supplies

The materials you purchase to work in your home office, such as paper, pens, pencils, pads, printer ink, staples, paper clips, etc, can typically be deducted at full cost as long as the items are used for business.

Hardware and Equipment

If you require specific hardware, such as a laptop, personal computer, tablet, or other types of equipment to run your business, these purchases may count as deductions.

Web Hosting and Online Tools

If you have a website and pay fees for web hosting, these expenses can likely be deducted from your taxes. If you use other online tools for your business, fees you pay for these services can also usually be deducted.

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