Tax Deduction Estimator
Check off the deductions that apply to you and see how much you could save. Many freelancers miss legitimate write-offs simply because they don't know what counts.
Common Freelancer Deductions
Check the box and enter your estimated annual amount
How This Works (And What I Learned the Hard Way)
In my first year of freelancing, I reported my income to the IRS and paid tax on every dollar of it. It wasn't until a friend asked me "Did you deduct your laptop?" that I realized I had left thousands of dollars on the table. I had bought a $2,400 MacBook Pro for client work, paid for Adobe Creative Cloud all year, and used my home office daily — but I claimed exactly zero of it.
That mistake cost me roughly $600 in extra taxes I didn't need to pay. This tool exists so you don't make the same error.
The Rule: "Ordinary and Necessary"
The IRS standard for a business deduction is simple: the expense must be ordinary (common in your line of work) and necessary (helpful for your business). This is broader than most people think. Your Spotify subscription might not count, but the Adobe subscription you use for client projects absolutely does.
Home Office: Simplified vs. Actual
If you use part of your home exclusively for business, you have two options:
- Simplified method: $5 per square foot, up to 300 square feet = max $1,500 deduction. No receipts required.
- Actual expense method: Deduct the business percentage of your rent, utilities, insurance, repairs, and depreciation. More paperwork, but often a larger deduction if you have a dedicated office in a high-rent area.
I use the simplified method because I hate paperwork, but if you rent a 3-bedroom and dedicate one room exclusively to business, the actual method could save you significantly more.
Self-Employed Health Insurance
If you buy your own health insurance and are not eligible for a spouse's employer plan, you can deduct 100% of your premiums. This is an above-the-line deduction, meaning it reduces your Adjusted Gross Income (AGI) even if you take the standard deduction. For my family plan at $680/month, that's $8,160 off my taxable income.
Retirement Contributions: The Hidden Gem
This is the most powerful deduction most freelancers ignore. With a Solo 401(k), you can contribute up to $23,000 as an employee (2024 limit) plus roughly 20% of your net self-employment income as an employer contribution, up to a total of $69,000. A SEP-IRA lets you contribute up to 25% of net earnings, capped at $69,000. Both are deducted from your taxable income.
I opened a Solo 401(k) in 2024 and contributed $15,000. That single move saved me roughly $3,600 in federal taxes while building my retirement. If you're not using this, you're paying the IRS instead of your future self.
Important: This estimator uses a rough 25% combined tax rate for quick math. Your actual savings depend on your marginal federal rate, state rate, and self-employment tax. Use our main calculator for precise numbers.