Self-employed tax deductions checklist for 2026
Every dollar of business expense lowers both your income tax and your self-employment tax. Use this list to catch the deductions freelancers miss most often.
A business expense must be ordinary and necessary: common in your line of work and helpful for it. Personal costs are not deductible, and mixed-use items are deductible only for the business share.
Deducted on Schedule C (cuts both taxes)
| Expense | Notes |
|---|---|
| Home office | $5 per sq ft up to $1,500, or the business share of actual costs. Compare methods |
| Business mileage | 72.5¢ a mile to June 30, 2026, 76¢ from July 1, plus parking and tolls. Calculate |
| Computer, phone and equipment | Often deducted in full in the year bought. Business share only for mixed use. |
| Software and subscriptions | Design tools, accounting software, cloud storage, hosting. |
| Internet and phone service | Business share of the bill. |
| Professional services | Accountant, lawyer, bookkeeper, tax software. |
| Marketing | Website, domain, ads, business cards, portfolio sites. |
| Platform and payment fees | Marketplace commissions, PayPal and Stripe fees. |
| Education | Courses and books that maintain or improve skills for your current work. |
| Business insurance | Professional liability, equipment cover. |
| Travel | Transport, lodging and 50% of meals on overnight business trips. |
| Business meals | 50% of meals with clients where business is discussed. |
| Coworking and office rent | Desk memberships and office space. |
| Bank fees and interest | On business accounts and business loans. |
Deducted on Form 1040 (cuts income tax only)
| Deduction | Notes |
|---|---|
| Half of self-employment tax | Automatic, from Schedule SE. |
| Self-employed health insurance | Premiums for you, your spouse and dependants, if you can't get an employer plan. |
| SEP-IRA | Up to $72,000 for 2026, limited to roughly 20% of net self-employment earnings. |
| Solo 401(k) | Up to $24,500 as the employee plus a profit-sharing contribution, within the $72,000 total. |
| Health savings account | If you have a high-deductible health plan. |
| Qualified business income deduction | Up to 20% of business profit, with a $400 minimum from 2026 for active businesses with at least $1,000 of profit. |
Keep the records
Keep receipts, invoices, bank statements and your mileage log for at least three years after filing. A separate business bank account makes this far easier and makes your expenses easier to prove.
See what your deductions save
Enter your income and expenses in the 1099 tax calculator and change the expenses figure to see the effect on your tax.
Figures for tax year 2026. See figures and sources. General information, not tax advice.