Been freelancing for years but still feel like I’m leaving money on the table every tax season.
Started tracking expenses better this year and realized how much I was missing - home office costs, software subscriptions, even some travel expenses I never thought to deduct.
Wondering what other deductions people actually use that make a real difference on their returns.
Car expenses hit different when you actually calculate them properly. I was just guessing at mileage for the longest time until I started using one of those apps that tracks automatically.
Turns out I drive way more for work than I thought:
You can either deduct actual costs or use the standard mileage rate. I found the mileage rate usually works out better unless you drive something really expensive.
Another thing that adds up is subscriptions. Not just the obvious ones like Adobe or project management tools, but smaller stuff too. That $3 monthly app you use for time tracking? Business expense. The premium version of your note-taking app? Same deal.
Business insurance is often overlooked too. Professional liability, equipment coverage, even the business portion of your renters insurance if you work from home.
One weird one I learned about is business gifts. You can deduct up to $25 per person per year for client gifts. Holiday cards, thank you gifts, stuff like that.
Meals are huge if you actually track them. I used to skip this completely but now I save every receipt when I meet clients or potential clients for coffee or lunch. Even grabbing food while working late counts as a business expense.
Phone bills too - I deduct the percentage I use for business calls and emails. Same with internet since I work from home.
The big one that surprised me was professional development. Books, courses, conferences - all deductible. I spent maybe $800 on learning stuff last year and wrote it all off.
Oh and don’t forget about equipment depreciation. That laptop or camera you bought? You can spread the deduction over several years instead of taking it all at once. Sometimes that works out better depending on your income.
Keep photos of receipts on your phone. Makes everything easier come tax time.
Vehicle repairs count if you use your car for work. Oil changes, brake pads, whatever keeps it running.
Keep receipts for everything work related and scan them right away. Storage boxes, printer ink, even the coffee I buy when working from a cafe all count.
My biggest surprise was learning about the home office deduction. You can deduct part of your rent or mortgage based on the square footage you use for work.
Marketing costs are worth tracking too. Business cards, website hosting, even paying for ads on social media platforms adds up over the year.
Accountant fees are deductible. Many forget this one, but it adds up fast.
Office supplies are important. Paper, pens, folders, and that good chair you bought for your back are all business expenses.
I deduct part of my cell phone and internet every month. Just figure out what percentage you use for work and keep it consistent.
Don’t miss bank fees. Monthly fees on your business account, wire transfer costs, and even overdraft fees during business count. Track all of it.
Tools and equipment repairs add up quick too.