Freelance Expense Category Finder

Must be used for business. Personal-use portion is not deductible.

Fully deductible if used exclusively for business.

Deductible as ordinary business software. Keep receipts.

Fully deductible as a business expense.

Must be used in client work or marketing.

IRS simplified method: $5 per sq ft, max 300 sq ft ($1,500). Space must be used regularly and exclusively for business.

Deduct actual home expenses × (office sq ft ÷ total sq ft). Includes rent, utilities, insurance, depreciation. Must use Form 8829.

Deduct business-use percentage. Can expense immediately via Section 179 or bonus depreciation. Mixed personal/business use requires allocation.

If used exclusively for business, fully deductible via Section 179 in year of purchase.

Deduct the percentage used for business. A common approach is 50-80% for most freelancers. Keep a log if audited.

Deduct the business-use percentage. If you work from home full-time, 50-80% is reasonable. Keep documentation.

Standard mileage rate: $0.67/mile in 2024. Commuting to a regular office does NOT qualify. Client visits, bank trips, supply runs do qualify.

Trip must be primarily for business. If mixing personal travel, only the business portion is deductible. Document purpose.

Must be away from home overnight for business. Personal days on a mixed trip are not deductible.

50% deductible under TCJA 2017. Must have a business purpose — discuss business before, during, or after the meal. Document who attended and the business purpose. Entertainment (sports, concerts) is NOT deductible.

50% deductible. Must be a genuine business discussion. Keep the receipt and note who you met with and why.

Previously 100% deductible; TCJA 2017 reduced to 50%. Office holiday parties for all employees remain 100% deductible through 2025.

Must maintain or improve skills required in your current work. Cannot be for a new career or profession. A designer learning advanced Figma = deductible. A designer getting an MBA = typically not.

Must relate to your field. General-interest books are not deductible. Technical books in your domain are fully deductible.

Registration, materials, and directly related expenses are 100% deductible. Travel, lodging, and meals at the conference follow their own rules (100%, 100%, 50%).

Fees for business tax prep and bookkeeping are 100% deductible on Schedule C. Personal tax prep fees (Form 1040 personal portion) are no longer deductible under TCJA.

Legal fees for business purposes are fully deductible: contract drafting, business formation, IP protection. Personal legal fees are not deductible.

Fully deductible as advertising and marketing.

Business website costs are fully deductible. If the site is mixed personal/business, allocate accordingly.

Fully deductible as marketing expense.

Deduct on Form 1040 Schedule 1, not Schedule C. Reduces AGI directly. Contribution deadline is tax filing deadline including extensions.

Employee contributions: $23,000 ($30,500 if 50+). Employer match: 25% of net SE compensation. Must be established by Dec 31 of the tax year.

Deducted above-the-line on Schedule 1, not on Schedule C. Cannot exceed net profit from the business. Not available if eligible for employer-sponsored coverage.

Fees on business accounts are fully deductible. Personal account fees are not.

Transaction fees charged by payment processors on business income are fully deductible.

Memberships in professional organizations related to your trade are fully deductible. Social clubs (country clubs, athletic clubs) are generally NOT deductible.

Standard office supplies used for business are fully deductible. Keep receipts.

Business shipping and postage is fully deductible.

Commuting between your home and a regular, fixed place of business is never deductible. This is a fundamental IRS rule. Business travel to temporary work locations is different.

General clothing, even purchased for work, is not deductible unless it is a uniform or protective gear that cannot be worn outside of work (e.g., hard hats, scrubs, branded uniforms).

Personal gym memberships are not deductible even if you maintain fitness for your job. Exception: if you are a personal trainer who pays for a gym to train clients.

Coworking space used exclusively for business is fully deductible as office rent. No home office required.

Charitable contributions are NOT deductible on Schedule C as a business expense. They may be deducted on Schedule A if you itemize deductions. Business sponsorships (where you receive advertising in return) may be deductible as advertising.

Platform fees deducted from your earnings (Upwork 10-20%, Fiverr 20%) are deductible business expenses. They reduce your gross income on Schedule C.