Tax Benefits for the Self-Employed: How to Maximize Your Deductions

Being your own boss changes how taxes work for you. While self-employment comes with extra paperwork and rules, it also offers valuable tax deductions that can significantly lower your bill. 

Let’s explore the many self-employed tax benefits. These tips can help you take advantage of often-overlooked tax deductions for business owners—so you keep more of what you earn.

Why self-employment has tax advantages over traditional employment

Although entrepreneurs take on more financial risk than employees, the tax code helps balance things out by offering valuable deductions for business owners.  

For instance, you can reduce your self-employment taxes by deducting many normal company expenses, such as marketing costs, wireless phone and internet bills, or business mileage. Conversely, employees generally can’t write off the costs related to their job.  

These types of deductions used to be available to employees, but it was suspended under the Tax Cuts and Jobs Act (TCJA) through tax year 2025. Unless current law is extended, the deduction is expected to return for tax year 2026.

Understanding self-employed tax deductions: How they work

Minimizing your tax liability (and perhaps even getting a refund) sounds great, but how do tax deductions actually work when you’re self-employed? First, let’s define the term tax deduction. 

A tax deduction lowers the amount of your gross income, which is subject to tax, while also indirectly lowering the amount of taxes you owe. This differs from a tax credit, which directly reduces your tax liability dollar for dollar. When you’re self-employed, you can deduct eligible business expenses, such as office supplies, marketing costs, and travel.  Read on for more details about deductible expenses. You can also check out our self-employed tax deduction calculator to see common write-offs based on your line of work.

Deducting work expenses and business fees

What does it really cost to run your business? Your company probably incurs relatively small expenses all the time—and they add up. For instance, you may pay for:  

• Website hosting and a domain name to have a digital home for your operation 
• A membership to a professional organization to help you network and keep your skills sharp 
• Payment processing, with each sale resulting in a separate fee 
• Ads on social media to market your services 
• Pens and sticky notes to keep you organized 
• Insurance coverage to protect your business 
• Professional services to help you do things like navigate a legal situation or file your taxes 
• Industry-specific books and training materials directly related to your business 

All those costs can be deducted from your taxable income, so make sure you don’t skip those expenses when you file your taxes. Just make sure the costs are dedicated solely to your business.

The home office deduction: Who qualifies and how to claim it

If you run your business from your house, one of the tax write-offs you should pay attention to is the home office deduction. You’re able to take the home office deduction for the space you use in your house as a home office as long as it is a dedicated workspace used regularly and exclusively for your self-employed business.  

The Internal Revenue Service (IRS) lets you deduct home expenses like rent, mortgage interest, home insurance, and utility bills, but only for the portion of your home you use exclusively for business.  

You can choose between two deduction methods: 

• Simplified method: Deduct $5 per square foot of office space, up to 300 square feet, for a maximum deduction of $1,500. 
• Regular method: Deduct a percentage of actual home expenses based on the portion of your home used for business. 

Note: If you work from home for an employer, you are not currently eligible for a home office deduction. This home office deduction is only available to self-employed taxpayers. This deduction used to be available to employees, but it was suspended under the Tax Cuts and Jobs Act (TCJA) through tax year 2025.

Travel, education, and professional development deductions

The business world moves rapidly, so if you don’t keep up with the latest trends and technology in your field, you’ll get left behind. Furthering your education can be time-consuming and expensive. Fortunately, another self-employed tax benefit is the ability to write off the cost of continued professional development as long as it maintains or improves your skills for your current profession or trade. 

Here are some of the education-related expenses you may be able to deduct: 

• Conference or business event tickets 
• Classes, seminars, or training sessions 
• Business coaching services 
• Books related to business, your industry, or the service you provide 

In addition, you might be able to write off business-related travel costs, including: 

• Plane, train, bus, or cab fare 
• Lodging 
• Parking 
• Meals 

If you rent a car when you arrive at your destination, the expense is deductible as long as the car is used exclusively for business. Also, keep in mind that you can deduct your car expenses either using the standard mileage rate or actual expenses like lease payments and repair costs attributable to the business use of your car. 

Essential hardware, software, and technology write-offs

Did you buy a desktop computer, a laptop, a monitor, an iPad, or any other piece of technology to help grow your business? It would be deductible as long as it is used strictly for business purposes. What about computer software? If you didn’t buy a new computer this past year but had to update your current software or purchase new software to get the job done, you can write that expense off. This is an especially important deduction to remember because software gets expensive rather quickly.

Office supplies and equipment: What you can deduct

Ever worked in a big office and thought about how many: 

• Pens you lost?  
• Post-it pads and printer ink cartridges you went through?  
• Highlighters, paperclips, and staplers you used?  

You don’t think about the costs of such items when you’re an employee. But when you’re a business owner, you realize how quickly those everyday items add up.  

Fortunately, you can save some money by writing off these costs as self-employed tax deductions. As long as these items are used strictly for business, they are all deductible. 

Don’t forget your home office furniture. Your desk, chair, printer stand, and even trash can all be deducted on your tax return. You can also write off business cards, flyers, and other marketing items. Just remember to keep your receipts.

How TurboTax for self-employed workers can help you claim every deduction

Filing your taxes as a small business owner may seem complicated. TurboTax for self-employed professionals is here to make the process easy. 

The platform will help you: 

• Demystify tax forms so you’ll understand 1099-NEC vs. 1099-K and how they flow into your personal income tax return
• Claim every deduction and tax credit that applies to your business on your Schedule C
• Access live, expert help when you need it 
• Feel confident in your income tax return because the system guarantees the accuracy of its calculations 

Don’t want to prepare and file your taxes yourself? TurboTax has tax professionals ready to handle the job for you.

Making the most of self-employed tax benefits

You can save a significant sum by taking advantage of the self-employed tax benefits you qualify for. Be sure to keep and organize your receipts from every purchase to make tax time easier. Software like TurboTax can streamline the tax filing process and help you maximize your tax savings. 

Get started with TurboTax today. 

Related reading: Whether you’re preparing to file your taxes, figuring out estimated taxes, or gearing up for the next tax season, check out these tax tips for the self-employed.