10 Tax Deductions Freelancers Shouldn't Miss in 2024

Last Updated: January 15, 2024

Missing tax deductions is like leaving money on the table. In this guide, we'll cover the 10 most valuable (and often overlooked) tax deductions that could save you thousands in 2024. Best of all? They're all completely legal and IRS-approved!

💡 Pro Tax Tip

Use FreeTaxUSA's Self-Employed Edition to automatically find these deductions. Their software walks you through every possible write-off, ensuring you don't miss anything.

#1: Home Office Deduction (The Big One!)

This is often the largest deduction for freelancers. You can deduct:

  • Part of your rent or mortgage interest
  • A portion of your utilities
  • Percentage of home insurance
  • Home repairs related to your office space

⚠️ Important Rules

  • Space must be used regularly and exclusively for business
  • Take measurements and photos for documentation
  • Calculate the percentage of home used for business
  • Choose between simplified ($5 per square foot) or actual expense methods

#2: Retirement Contributions (Double Tax Benefit!)

  • Solo 401(k): Up to $69,000 in 2024
  • SEP IRA: 25% of net earnings
  • Traditional IRA: $7,000 ($8,000 if 50+)
  • Reduces your taxable income AND builds retirement savings

🚀 Quick Action

Set up your Solo 401(k) with Solo401k.com. They handle all the paperwork and help maximize your tax-deductible contributions.

#3: Health Insurance Premiums

  • Monthly insurance premiums
  • Dental and vision coverage
  • Long-term care insurance
  • Family coverage premiums

🏥 Health Savings Bonus

Open a Lively HSA account for additional tax savings. Contributions are deductible, and withdrawals for medical expenses are tax-free!

#4: Professional Development

  • Online courses and workshops
  • Professional certifications
  • Books and educational materials
  • Conference fees and travel
  • Professional association memberships

#5: Business Equipment

  • Computers and tech gear
  • Office furniture
  • Cameras and equipment
  • Work-specific tools
  • Software and subscriptions

💳 Smart Purchase Tip

Get the Amex Blue Cash Card for your business purchases. You'll earn cash back plus get detailed expense reports, and a $250 welcome bonus!

#6: Travel and Vehicle Expenses

  • Mileage (56.5 cents per mile in 2024)
  • Client meeting travel
  • Conference travel
  • Parking and tolls
  • Vehicle maintenance (if used for business)

#7: Marketing and Advertising

  • Website costs
  • Social media advertising
  • Business cards and materials
  • Email marketing software
  • Lead generation services

#8: Professional Services

  • Accounting services
  • Legal fees
  • Business coaching
  • Consulting fees
  • Contract labor

#9: Insurance Premiums

  • Business liability insurance
  • Professional liability insurance
  • Equipment insurance
  • Cyber insurance
  • Business interruption insurance

#10: Banking and Interest

  • Business credit card interest
  • Bank fees
  • Payment processing fees
  • Business loan interest
  • Merchant account fees

💰 Investment Strategy

Use M1 Finance to invest your business profits tax-efficiently. Get automated tax-loss harvesting and a $50 bonus to start.

⚠️ Important Reminders

  • Keep detailed records of all expenses
  • Take photos of receipts
  • Use separate business accounts
  • Track mileage in real-time
  • Save digital copies of everything

Calculate Your Tax Savings

Try Our Free Tax Savings Calculator

See exactly how much these deductions could save you!