12 Write-Offs You Probably Missed

Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.

Capture Everyday Business Costs for Self-Employed Taxes

Freelancers often leave money on the table by skipping small but recurring expenses. These deductions reduce taxable income, so track them as soon as they occur.

1. Coworking memberships – Deduct day passes or monthly fees when you use the space for client work.
2. Home office portion of rent or mortgage interest – Measure the square footage dedicated to business and apply the IRS simplified or regular method.
3. Utilities and internet – Write off the business-use percentage of electricity, heating, and broadband.
4. Mobile phone plan – Deduct the share tied to client calls, texting, and data usage.
5. Professional development – Courses, webinars, and certifications that sharpen skills are eligible.
6. Software subscriptions – Cloud tools, design suites, and project management apps qualify.
7. Mileage and rideshares – Track business trips using Everlance or a spreadsheet; choose the standard mileage or actual expense method.
8. Equipment depreciation – Spread the cost of laptops, cameras, or sound gear over their useful life or take advantage of Section 179 when appropriate.
9. Health insurance premiums – If self-employed with no employer coverage, deduct eligible premiums.
10. Client gifts and cards – Up to $25 per client per year, plus shipping.
11. Bank and payment processing fees – Stripe, PayPal, and bank maintenance fees are all deductible.
12. Retirement contributions – Solo 401(k) and SEP IRA contributions reduce your taxable income and build future savings.

Documentation Tips

Store digital copies of receipts in a folder structure by quarter and category. Use payment descriptions that tie to the actual expense (e.g., “Q2 coworking pass – Client A kickoff”). Keep mileage logs with dates, destinations, and purpose. For larger purchases, retain warranties and serial numbers in case of audit.

Make Deductions Routine

Schedule a monthly review to categorize transactions. Sync your bank feed to accounting software so deductions populate automatically and map to the correct schedule C line item. The effort is minimal compared to the savings.

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