Expenses freelancers forget to deduct
Ordinary-and-necessary business costs that are easy to overlook when records are messy.
Business expenses reduce the profit you are taxed on, but messy records mean missed deductions. Many freelancers overlook ordinary costs simply because they were never tracked.
Commonly overlooked
- The business share of your phone and internet.
- Software subscriptions and professional memberships.
- Business insurance and bank or payment-processor fees.
- Mileage, if you kept a log.
- Self-employed health insurance and retirement contributions.
- Startup costs from your first year in business.
The standard
To be deductible, an expense generally has to be ordinary and necessary for your business, and you need documentation. Not every category applies to everyone — keep records and confirm the details with a professional.
Sources
- IRS — Schedule C (Form 1040) Instructions
- IRS — Deducting Business Expenses
See where you stand
The free readiness check scores your records and flags the gaps that matter — in 2–4 minutes, with no SSN, tax forms or bank data.
Check your tax-readinessEducational information only — not tax, legal or financial advice, and not specific to your situation. Consult a qualified CPA/EA before acting.