Top 15 Easy Tax Deductions For The Self-Employed (2024)

Dimitri Gedevanishvili

Dimitri Gedevanishvili

Marketing Manager
self employed woman working at her desk

As a self-employed individual, navigating the world of taxes can be a daunting task. However, understanding the tax deductions available to you can help maximize your savings and minimize your tax liability.

In this article, we will explore 15 common tax deductions that can benefit the self-employed. By taking advantage of these deductions, you can ensure that you are not paying more taxes than necessary.

Best Tax Deductions For Self-Employed #1: Home Office Deduction

If you have a dedicated space in your home that is used exclusively for your business, you may be eligible for the home office deduction. This deduction allows you to deduct a portion of your home expenses, such as rent or mortgage interest, utilities, and insurance.

Best Tax Deductions For Self-Employed #2: Business Supplies and Equipment

From office supplies to computer hardware and software, any expense incurred for business-related supplies and equipment can be deducted. Keep track of your receipts and make sure to include these expenses when filing your taxes.

Best Tax Deductions For Self-Employed #3: Travel Expenses

If your business requires you to travel, you can deduct expenses such as airfare, lodging, parking, meals, and transportation. Be sure to keep detailed records of your travel expenses, including receipts and a log of your business-related activities.

Best Tax Deductions For Self-Employed #4: Mileage & Vehicle Expenses

If you use your vehicle for business purposes, you can deduct expenses such as mileage, fuel, maintenance & repairs, insurance, and depreciation. Using a mileage tracker app like TripLog makes accurately calculating the percentage of business use for your vehicle a breeze!

Related: Self-Employed Worker Mileage Tax Deduction Guide

Best Tax Deductions For Self-Employed #5: Professional Services

Fees paid to accountants, lawyers, and other professionals for services related to your business are deductible. These expenses can include tax preparation fees, legal advice, and consulting services.

Best Tax Deductions For Self-Employed #6: Advertising and Marketing

Promoting your business is essential, and the expenses incurred for advertising and marketing are fully deductible. This includes costs related to online advertising, print media, social media marketing, and website development.

Best Tax Deductions For Self-Employed #7: Health Insurance Premiums

Self-employed individuals can deduct the cost of health insurance premiums for themselves, their spouses, and their dependents. This deduction can provide significant tax savings and contribute to your overall financial well-being.

Best Tax Deductions For Self-Employed #8: Retirement Contributions

Contributions made to a retirement plan, such as a Simplified Employee Pension (SEP) IRA or a solo 401(k), can be deducted. Not only will this help you save for the future, but it also provides a tax advantage in the present.

Best Tax Deductions For Self-Employed #9: Education and Training

Investing in your professional development and improving your skills is crucial for any self-employed individual. The expenses incurred for courses, workshops, conferences, and relevant educational materials can be deducted.

Related: Rideshare Tax Guide: What You Need To Know For 2024

Best Tax Deductions For Self-Employed #10: Business Insurance

Premiums paid for business insurance, such as liability insurance or professional indemnity insurance, are fully deductible. Protecting your business against unforeseen circumstances is not only wise but also financially beneficial.

Best Tax Deductions For Self-Employed #11: Self-Employment Taxes

Self-employed individuals are responsible for paying both the employer and employee portions of Social Security and Medicare taxes. However, you can deduct the employer portion of these taxes, which helps offset the overall tax burden.

Best Tax Deductions For Self-Employed #12: Licenses and Permits

The costs associated with obtaining and renewing licenses and permits required for your business operations can be deducted. Whether it’s a professional license or a local business permit, keep track of these expenses for tax purposes.

Best Tax Deductions For Self-Employed #13: Depreciation

When you purchase assets for your business, such as equipment or vehicles, their value decreases over time. You can deduct a portion of the asset’s value each year through depreciation, reducing your taxable income.

Best Tax Deductions For Self-Employed #14: Subcontractor Expenses

If you hire subcontractors or freelancers to assist with your business, their fees can be deducted as a business expense. Keep records of payments made and ensure that you issue the necessary tax forms, such as Form 1099-MISC.

Related: Top 5 Must-Know Tips For Independent Contractors

Best Tax Deductions For Self-Employed #15: Miscellaneous Expenses

There are many other expenses that may be deductible, such as bank fees, business-related subscriptions, and professional memberships. Keep track of all your business-related expenses, no matter how small, to maximize your deductions.

Best Tax Deductions For Self-Employed: In Conclusion

Understanding the tax deductions available to the self-employed is crucial for optimizing your tax strategy and reducing your overall tax liability. By taking advantage of these 15 common deductions, you can ensure that you are maximizing your savings and keeping more of your hard-earned money.

If you drive for work, be sure to download TripLog, the #1 mileage tracker app! TripLog automatically starts tracking when you start driving, and stops when you stop, making tracking your business mileage easier than ever.

Download TripLog on iOS or Android today!

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Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

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According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

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2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

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$208,334

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$4,167

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