Top Deductions for Self-Employed Individuals

Are you a small business owner who is self-employed? Below are 10 tax deductions that clients often overlook - leading to a larger tax bill!

1. 🧾 Home Office Deduction

If you work from home, you may be eligible to deduct a portion of your housing costs — even rent or mortgage interest.

Requirements:

1. The space must be used regularly and exclusively for business.

2. It must be your principal place of business.

You can use either the simplified method or the actual expense method.

2. 🚗 Business Vehicle Use

Use your personal car for business? You can choose to deduct mileage or actual vehicle expenses. The standard mileage rate for 2025 is 70 cents per mile! Just be sure to keep a mileage log!

3. 💻 Business Equipment & Supplies

Office supplies, tools, printers, laptops — anything used in your business may be deductible.

Examples:

• Software subscriptions

• Website hosting and design

• Office furniture

• Shipping and postage

4. 📱 Phone & Internet Expenses

If you use your phone and internet for business, you can deduct a portion of your monthly bill. Just be sure to allocate personal vs. business use appropriately.

5. 💼 Professional Services

Fees paid to professionals — including accountants (hey, that’s us!), attorneys, consultants, or marketing agencies — are all deductible if they are for your business.

6. ✈️ Travel and Meals

Business travel costs such as airfare, hotels, rental cars, and 50% of qualifying business meals can be deducted.

Rules to follow:

• The trip must have a legitimate business purpose.

• The expenses must be reasonable and relatable to your business (no, you can't write off a weekly trip to Jeff Ruby's if you are a contractor!)

• Keep records of dates, locations, and receipts.

7. 🧠 Continuing Education

If you take classes, attend webinars, or maintain certifications related to your business, you can deduct those expenses. This includes:

• Online courses

• Trade publications

• Licensing fees

8. 🏥 Health Insurance Premiums

Self-employed individuals may be able to deduct 100% of health insurance premiums for themselves, their spouse, and dependents — even if you don’t itemize.

9. 🧾 Self-Employment Tax Deduction

You can deduct half of your self-employment tax (Social Security and Medicare) from your income. It doesn’t reduce the tax itself, but helps reduce your adjusted gross income (AGI).

10. 💳 Bank & Payment Processing Fees

Paying fees to process credit card payments (Stripe, PayPal, etc.) or for a business bank account? Those are deductible too!

✔️ Final Thoughts

The key to maximizing your deductions is keeping excellent records — and knowing what qualifies. Many self-employed individuals overpay simply because they aren’t claiming all the deductions they’re entitled to.

🤝 Need Help Navigating Self-Employment Taxes?

At Kammer Accounting Services, we specialize in helping freelancers, consultants, and small business owners maximize deductions and stay compliant. Let us help you keep more of what you earn.

Schedule a free consultation today.