Every dollar you deduct in business expenses reduces both your taxable income and your self-employment tax. This guide covers every major deduction available to freelancers and 1099 workers in 2026 — with exact rules for claiming each one.
Track every mile driven for work: client visits, supply runs, business travel. Use a mileage log app (MileIQ, TripLog) or manually record in a spreadsheet. Commuting to a regular office does not count. Rideshare and delivery drivers: every mile on the app counts.
How to claim: Schedule C, Part II, Line 9. Use Form 4562 if actual expenses method.
Instead of the mileage rate, you can deduct actual costs: gas, insurance, registration, repairs, depreciation — multiplied by business-use percentage. Keep all receipts. Usually only beneficial if you drive a very expensive or fuel-heavy vehicle.
Your home office must be used regularly and exclusively for business. Measure the square footage of your dedicated workspace. A shared room (office/guest room) generally does not qualify.
How to claim: Form 8829 or the simplified method on Schedule C, Part II, Line 30.
Deduct the business percentage (office sq ft / total home sq ft) of rent or mortgage interest, utilities, homeowner's/renter's insurance, and repairs. More complex but may yield a larger deduction for larger or more expensive spaces.
If you use your phone and internet for both personal and business purposes, deduct only the business-use percentage. A reasonable split for most freelancers is 50–80% business use. Document your reasoning.
How to claim: Schedule C, Part II, Line 25 (utilities) or Line 27 (other expenses).
If you're self-employed and not eligible for coverage through a spouse's employer plan, you can deduct 100% of health, dental, and vision insurance premiums for yourself and your family. This is an above-the-line deduction — it reduces your AGI, not just your taxable income.
How to claim: Form 1040, Schedule 1, Line 17. Not on Schedule C.
The Simplified Employee Pension IRA is easy to set up and has high contribution limits. Contribute up to 25% of your net self-employment income. Contributions are fully deductible from gross income.
For self-employed individuals with no employees (other than a spouse). Contribute as both employee ($23,500 elective deferral) and employer (up to 25% of net SE income). Catch-up contributions available if age 50+.
How to claim: Form 1040, Schedule 1, Lines 15–16.
Any software, app, or subscription you use for your business is deductible. Common examples:
| Tool/Subscription | Typical Use Case |
|---|---|
| Adobe Creative Cloud | Design, photo/video editing |
| QuickBooks / FreshBooks | Accounting and invoicing |
| Zoom / Google Workspace | Client communication |
| Notion / Asana | Project management |
| LinkedIn Premium | Client/job prospecting |
| Canva Pro | Marketing materials |
| Cloud storage (Dropbox, etc.) | File backup and sharing |
Section 179 lets you deduct the full purchase price of qualifying equipment in the year you buy it, rather than depreciating over several years. Applies to computers, cameras, tablets, tools, furniture, and more. 2025 limit: $1,220,000.
For items used partially for business, only the business-use percentage is deductible.
How to claim: Form 4562.
Courses, books, webinars, and workshops that maintain or improve your current job skills are deductible. Note: education that qualifies you for a new career is not deductible as a business expense (though it may qualify for education tax credits).
| Deduction | Where to Claim | Notes |
|---|---|---|
| Mileage (70¢/mi) | Schedule C, Line 9 | Log every trip |
| Home office | Form 8829 / Sch C Line 30 | Exclusive use required |
| Phone & internet | Schedule C, Line 25/27 | Business % only |
| Health insurance | Form 1040, Sch 1 Line 17 | Not on Schedule C |
| SEP-IRA / Solo 401(k) | Form 1040, Sch 1 Line 15–16 | Set up by tax deadline |
| Software / subscriptions | Schedule C, Line 27 | Business purpose only |
| Equipment (Sec. 179) | Form 4562 | Full cost in year of purchase |
| Half of SE tax | Form 1040, Sch 1 Line 15 | Automatic — from Sch SE |
| QBI deduction (20%) | Form 8995 | If income under threshold |
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