The IRS doesn’t send a friendly reminder about deductions you missed. If you don’t claim them, they’re gone. Here are twelve that consistently get left off self-employed returns — and they add up to real money.
1. Health insurance premiums
If you’re self-employed and not eligible for a spouse’s employer plan, you can deduct 100% of your health, dental, and vision premiums. This is an above-the-line deduction, meaning you get it whether you itemize or not.
2. Half of self-employment tax
You pay 15.3% self-employment tax, but you get to deduct half of it from your taxable income. Most tax software does this automatically — but verify it.
3. Retirement contributions
A SEP-IRA lets you contribute up to 25% of net self-employment income, capped at $69,000 for 2024. A Solo 401(k) can allow even more. Both reduce taxable income dollar for dollar.
4. Mileage
67 cents per business mile in 2024. Track it the day it happens.
5. Phone and internet
Deduct the business-use percentage. If your phone is 70% business, deduct 70% of the bill.
6. Software subscriptions
Adobe, QuickBooks, Zoom, ChatGPT, hosting, domains, project management tools — all deductible.
7. Professional development
Courses, certifications, conferences, and books that maintain or improve skills in your current field.
8. Bank and processing fees
Stripe, PayPal, Square, business bank account fees — all deductible business expenses.
9. Business insurance
General liability, professional liability (E&O), cyber insurance, and equipment coverage.
10. Marketing and advertising
Google Ads, Facebook Ads, business cards, your website, sponsored posts, even client gifts (up to $25 per recipient).
11. Professional services
Your accountant, lawyer, virtual assistant, contractor — every dollar paid for business services is deductible.
12. Startup costs
Up to $5,000 of expenses incurred before you officially opened are deductible in your first year. The rest is amortized.
The pattern: if you spent it because you have a business, it’s probably deductible. Save every receipt and let your accountant sort it out.