Overlooked Tax Deductions for Freelancers & 1099 Workers

You’re invoicing, networking, managing your own books—and still, tax time hits like a brick. Why? Because too many freelancers miss out on valuable deductions that could be saving them thousands.

If you’re a 1099 worker, contractor, or solopreneur, this post is for you. Here are the most commonly overlooked write-offs that can help you keep more of what you earn.

1. Home Internet & Cell Phone (Business Portion)

✅ If you use your phone or Wi-Fi for work, a portion is deductible.

📌 Pro Tip: Deduct the percentage you use for business—like 60% of your phone bill if that’s your work usage. Keep records to support your estimate.

2. Software Subscriptions

✅ Canva, Zoom, Adobe Creative Suite, Grammarly, QuickBooks—if it helps you do your job, it’s deductible.

🚫 Mistake: Forgetting to include auto-renewing monthly subscriptions.

3. Continuing Education

✅ Online courses, certifications, or industry webinars that improve your existing skill set are deductible.

📌 Rule: Must be related to your current trade—not a new career path.

4. Client Gifts

✅ You can deduct up to $25 per client per year for gifts.

📌 Pro Tip: Add a personalized note—it’s great for relationships and recordkeeping.

5. Business Use of Personal Car

✅ You can deduct either:

• Standard mileage rate (67 cents/mile for 2024)

• Actual vehicle expenses (gas, repairs, insurance)

📌 Pro Tip: Use an app like MileIQ to track automatically.

6. Professional Memberships & Tools

✅ Dues for industry groups, trade associations, and specialty platforms (like Upwork, Fiverr Pro, HoneyBook, etc.).

🚫 Mistake: Missing deductions for marketplace fees and transaction charges.

7. Office Equipment & Furniture

✅ Laptops, monitors, office chairs, standing desks—you can deduct the full cost or depreciate it.

📌 Bonus: Items under $2,500 usually qualify for the de minimis safe harbor election—no need to depreciate.

8. Business Insurance

✅ If you carry liability, E&O, or freelancer-specific policies (like content or design protection), you can deduct the premiums.

9. Banking & Payment Processing Fees

✅ Fees from PayPal, Stripe, Wave, and even monthly business account maintenance charges are deductible.

📌 Pro Tip: Track these through your payment processor dashboards.

10. Website Costs

✅ Hosting, domain renewals, website templates, and design tools all count.

🚫 Mistake: Forgetting one-off annual fees for site maintenance or plugins.

Final Thoughts: Add It All Up

These overlooked deductions can make a huge difference in your final tax bill—and every little bit adds up.

Need help identifying your write-offs or organizing your books? Let’s connect: https://www.glavinicfs.com/bookandrew