Make sure this tax season and stress-free and give you the best return possible this year. These 14 creative tax deductions can lower your tax bill, but you might not realize they’re write-offs for your business!
If you’re self-employed, tax season can feel overwhelming. You scroll through bank statements wondering whether an ergonomic chair or a new laptop counts as a deduction. To avoid the risk of getting something wrong, you leave out potential write-offs altogether. And you’re not alone: Many small business owners miss legitimate deductions simply because they’re not obvious. That doesn’t have to be the case anymore.
Tackle your self-employment tax deductions this year with confidence. We’ve put together a list of the key tax write-offs for small businesses—including ones you didn’t know existed—so you know what to claim and how to reduce tax liability. We’ll also touch on self-employment tax tips to make the filing process as pain-free as possible this tax year.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax rules vary by state or jurisdiction—consult a qualified attorney or tax professional for guidance specific to your situation.
Jump to:
- What are self-employment tax deductions?
- How to report deductions and get ahead of tax season
- Should I take the standard deduction or itemize?
- How much is the tax for the self-employed?
- Online-related self-employment tax deductions
- Bills and utility-related self-employment tax deductions
- Self-employment fees and payments
- Goods and services tax deductions
- Transportation self-employment tax deductions
What are self-employment tax deductions?
Self-employment tax deductions are any business expenses you’re allowed to claim on a tax return. These write-offs reduce taxable income, ultimately lowering your tax bill or increasing your refund.
You’ll report these expenses on Schedule C, the IRS form used by sole proprietors to list business income, deductions, and profit or loss. Per the IRS, any cost qualifies as a tax deduction only when it’s both “ordinary” and “necessary”—meaning it’s normal for your industry and helpful to your business. For independent contractors and small business owners, this covers a lot of different deductions.
Pro tip: Know the difference between deductions and credits. Deductions are subtracted from your gross business income before your tax bill is calculated, while credits are a dollar-for-dollar reduction in the amount of self-employment tax you owe.
Get ahead of tax season
Use our free self-employment tax calculator to estimate your tax rate.
What fees are excluded from this deduction?
Not every business cost counts as a deductible, so it’s important to know which expenses don’t qualify. The IRS excludes the following business expenses from being used as a tax write-off for the self-employed:
- Income taxes
- Estate and gift taxes
- Property taxes on your home or personal property
- Sales taxes on property purchased for use in the business
- Fuel taxes on motor fuels you use in the business
- Other taxes and license fees not related to the business
How to report deductions and get ahead of tax season
Whether you’re a sole proprietor or a single-member LLC, you’ll use Form 1040 and the Schedule C attachment to file taxes as a self-employed professional.
Though you can download the forms directly from the IRS website, it’s typically easier to fill them out using online tax software, such as TurboTax or H&R Block. These tax-filing platforms automatically complete the form as you enter in your self-employment income tax information—and even walk you through the deductions that apply.
For a quick refresher on filing tax returns with the IRS, see HoneyBook’s filing guide and checklist that provides a start-to-finish overview of the process.
Should I take the standard deduction or itemize?
When reporting business expenses on Schedule C, you have two options for deductions:
- Standard deduction: This is a standard, fixed rate according to your filing status and tax year—no documentation necessary.
- Itemized deduction: With this method, you report every qualifying deduction. Itemizing requires much more work, as well as accurate recordkeeping. It’s worth doing if your deductions surpass the standard deduction amount, which is often the case with high real estate taxes, state taxes, medical expenses, charitable donations, etc.
Itemized deduction requires that you keep precise records of all invoices, receipts, and other supporting documents. Use software that centralizes your invoicing and tax obligations—like HoneyBook—to make this process easier.
How much is the tax for the self-employed?
Every creative business owner has a different level of tax liability, but the basics of self-employment taxes are the same for everyone.
Self-employment taxes cover contributions to Medicare and Social Security, and the current tax rate set by the IRS is 15.3% of your net earnings. However, if your income exceeds the threshold amount for your filing status, you have to pay an additional Medicare tax of 0.9%.
Ultimately, the amount of tax you owe and what you’re able to deduct depends on your business income and filing status. Ideally, your deductions during filing will lead to a tax refund instead of a tax bill—but this isn’t guaranteed, especially if you’re not aware of all the deductions you qualify for.
Here’s a list of 14 common self-employment tax deductions, grouped by category, to help reduce your tax liability.
Online-related self-employment tax deductions
If your small business has online or digital expenses, claim them on Schedule C—as long as they’re strictly for business. Here are the types of expenses that qualify.
1. Advertising, marketing, websites, and digital downloads
Digital marketing is a popular self-employment write-off. It involves any money spent on creating digital content and reaching potential customers online, including:
- Digital and social media ads
- Traditional print ads
- Sponsorships
- Website domain costs
- Digital downloads (e.g., fonts, stock photos, B-roll, digital visuals, etc.)
- Monthly or yearly subscriptions to web builders (e.g., Squarespace, WordPress, or Shopify)
2. Software
This category includes any business-related software license or online subscription typically charged as a monthly or annual fee:
- Cloud storage, like Google Drive, Dropbox, or OneDrive
- Other Google apps for your business
- Adobe Creative Suite
- Microsoft Office
- Digital or premium subscriptions, like Canva or LinkedIn
- Business management software, like HoneyBook
Bills and utility-related self-employment tax deductions
Claim any business-related bills and utilities as self-employment write-offs. These are the most frequently reported deductions for creative businesses.
3. Cell phone
If you use a cell phone for work, the bill is a qualifying expense. If you use the same phone for both business and personal purposes, estimate the percentage used for work. You can only write off the business-related percentage of cell phone costs.
4. Home office utilities
If you have a dedicated space at home for conducting business, claim related utilities or office expenses on Schedule C. Home office deductions may include bills for internet, electricity, and heating/cooling.
If you use these utilities only partially for work, estimate the portion used for business. To calculate the tax-deductible percentage, divide the square footage of the office space by your home’s total square footage. For example, if the office space takes up 10% of your home, then 10% of the utility costs are deductible.
Self-employment fees and payments
Here are some other regular business payments that you may be able to write off.
5. Commissions, fees, and loan interest
Payments for services, loans, or professional help qualify as deductibles on your annual income tax return. A few examples include:
- Commissions
- Merchant processing fees
- Service fees
- Health insurance premiums
- Liability or business insurance
- Loan interest (e.g., from a business bank loan or accrued credit card interest)
Make sure the fees and loans are business-only. You can’t write off personal credit card debt or student loans.
6. Retirement contributions
Independent business owners often don’t have the benefit of a company retirement plan, like a 401(k), unless they also work a traditional job. That’s why self-employed individuals tend to financially plan for the future with independent retirement contributions.
If you set up a SEP IRA, SIMPLE IRA, or solo 401(k) as a self-employed worker or small business owner, deduct contributions when filing returns. Just be mindful of your annual contribution limit, which can vary by plan.
7. Other expenses
This category is for any business-related expenses that you can’t easily classify. For miscellaneous expenses—such as employee and client gifts—create subcategories here.
Goods and services tax deductions
Tax benefits for the self-employed include payments made for goods and services, ranging from large purchases (such as a laptop) to small ones (such as printer paper). You may also be able to deduct payments to professionals hired to keep the business afloat.
8. Home office supplies and clothing
This category includes business essentials that are deductible, including:
- Smaller home office supplies (e.g., paper, pens, printer cartridges, etc.)
- Work equipment (e.g., computers, cameras, printers, etc.)
- Specialized clothing (e.g., protective gear, uniforms, and costumes)
Clothing must be specifically required for work and can’t take the place of regular clothing. For example, an outfit you wear to photograph a wedding wouldn’t qualify.
For long-term equipment, such as a computer, you have the option to claim it as an asset. This can further lower tax liability, as you can claim depreciation on these assets.
9. Contract labor
If you pay any other creatives or contractors to help with your business, the total amount paid to them falls under this contract labor category. For example, a photography business may hire second shooters, or an office-based business may contract virtual assistants.
10. Education and conference expenses
Any expenses related to educating or upskilling yourself may be considered business expenses, including:
- Books (e-books and physical books)
- Online courses
- In-person conferences
- Coaches
- Any other educational expenses
Note that education received from an accredited university counts toward a tax credit, not a deduction. Talk to a licensed tax professional about whether to take the credit or deduct the educational expense.
11. Legal accounting and services
Any fees you paid to lawyers or accountants for business purposes are deductible, including payments to independent professionals for IRS tax advice, contract guidance, etc.
12. Meals and entertainment
Food or drink expenses incurred while having a client meeting are deductible business expenses—as long as they’re not “extravagant.” Keep accurate records to report these expenses at the current deductible rate of 50%.
Some other entertainment expenses, such as a companywide party, may also qualify as business expenses. But, everyday personal activities, like working from a coffee shop, wouldn’t be deductible.
13. Repairs and maintenance
Under this category, deduct any money spent on repairing or maintaining equipment or office space. For example, a photographer sending their camera to the shop to get calibrated and cleaned can claim the maintenance cost under this category.
Transportation self-employment tax deductions
You can deduct any business expenses related to traveling or transportation on Schedule C—whether you’re driving to a client or traveling to a conference.
14. Car, truck, and travel expenses
Any travel expenses related to your business may include:
- Airline or train tickets
- Hotel costs
- Taxi fare
- Luggage fees
Additionally, you can get a self-employment write-off for your vehicle expenses. If you use your vehicle for both personal and business use, be meticulous about recordkeeping. You can report and claim the deductible on your total mileage for business purposes or business-use percentage of your vehicle expenses.
Unlock the full value of your self-employment tax deductions
Filing and paying self-employment taxes with the IRS doesn’t have to be stressful. Use our list of common self-employment tax deductions to write off more expenses and reduce your overall tax burden.
While write-offs should help with self-employed tax, remember that they must qualify as business expenses. As a rule of thumb, consider whether the purchase helps you run your business. If the answer is yes, at least a portion of the expenses may qualify as a deduction.
As you prepare for tax season, lean on an accounting expert or invest in a reliable software to simplify the tax process. With HoneyBook, you can efficiently track all your transactions and expense data in one place—making your tax workflows stress-free.
Capture leads, sell services, manage projects, and nurture client relationships from one platform. All that and more with HoneyBook.
FAQ
How do I get a good tax refund if I am self-employed?
Be sure to add all qualifying self-employment tax deductions to reduce your taxable business income. If you contribute to a self-employed retirement plan or pay for your own health insurance premiums, these write-offs can improve your chances of getting a good tax refund from the IRS.
What is the 20% self-employment tax deduction?
Self-employed taxpayers can use this Qualified Business Income (QBI) deduction to deduct up to 20% of their business income from their federal income taxes. Recently, the One Big Beautiful Bill Act (OBBBA) made this deduction permanent and expanded income thresholds for eligible businesses.
What expenses are 100% tax deductible?
Most business expenses related to administration, advertising, software (SaaS), and legal fees are 100% deductible. The OBBBA also restored 100% bonus depreciation for equipment purchased after 20 January 2025.
