✨Top Tax Deductions Every Self-Employed Professional Should Know

By Rhonda Davis, CoreLogix Consulting, LLC

Being self-employed gives you freedom—financial potential, flexibility, and the power to build something of your own. But that freedom also comes with responsibility… especially at tax time.

The good news? The IRS allows many deductions that can significantly reduce your taxable income. The key is knowing what qualifies, how to track it, and how to allocate expenses between personal and business.

Below are the essential deductions every freelancer, gig worker, and small business owner should know:

🧩 Business vs. Personal Use — How to Split Expenses

Not every expense will be 100% business. If something is used for both personal and business purposes, you can only deduct the business percentage.

How to calculate the split:

Business Use % = (Business Portion ÷ Total Use) x 100

Examples:

• You drive 10,000 miles in a year → 6,000 were business

  
  

  → 6,000 ÷ 10,000 = 60% deductible

• Your cell phone bill is $120/month

  
  

  → You estimate 70% business use

  
  

  → 70% × $120 = $84 deductible

  
  

💡 Keep documentation showing how you determined the percentage (logs, calendars, invoices).

The IRS requires reasonable and consistent tracking.

💼 1️⃣ Home Office Deduction

If you have a dedicated space exclusively used for business, you may deduct a portion of:

• Rent or mortgage interest

• Utilities

• Repairs

• Internet (business-use percentage applies)

• Property taxes & insurance

Simplified Method:

$5 per sq. ft., up to 300 sq. ft. = max$1,500 deduction

Regular Method:

(Business sq. ft. ÷ Home sq. ft.) × actual expenses.

🚗 2️⃣ Mileage & Vehicle Expenses

Choose one method:

• Standard Mileage Rate (covers gas, maintenance, depreciation)

• Actual Expense Method (track and deduct a percentage of: fuel, insurance, repairs, lease payments)

You must track mileage:

✔ Date

✔ Where you went

✔ Business purpose

✔ Miles driven

No logging personal trips — those are not deductible.

📱 3️⃣ Phone & Internet

Most people use phones for both business & personal.

Deduct:

• Business percentage of phone plan

• Business percentage of Wi-Fi

Example:

If you use your phone 60% for business → 60% of the bill is deductible.

🧾 4️⃣ Supplies & Equipment

100% deductible when used solely for business:

• Printers, scanners, laptops

• Office furniture

• Subscription software

If shared with personal use → deduct only the business percentage.

Some large assets qualify for Section 179 expensing (take full deduction upfront).

🧑‍🎓 5️⃣ Education & Certifications

As long as the education maintains or improves your business skills:

✔ Professional licenses

✔ IRS AFSP, QuickBooks certifications

✔ Conferences, webinars

✔ Professional reading materials

💡 6️⃣ Advertising & Marketing

All fully deductible when used to promote your business:

• Website design & hosting

• Flyers, postcards, signage

• Paid ads & networking fees

Branding is both smart and tax-smart.

🧑‍⚕️ 7️⃣ Self-Employed Health Insurance

Premiums for you, your spouse, and dependents can be deductible if:

• You are not eligible for employer coverage

Includes vision and dental!

⚙️ 8️⃣ Contract Labor & Employees

Paying for help is a business expense:

• Independent contractors → 1099-NEC required

• W-2 wages & payroll taxes → deductible payroll costs

📂 9️⃣ Professional Services

Deduct what you pay to:

• CPAs & bookkeepers (hi 👋)

• Attorneys

• Business consultants

🏦 10️⃣ Business Insurance

Examples:

• General liability

• E&O / professional liability

• Workers comp

All deductible as operating expenses.

📌 Documentation is Your Best Friend

Audits aren't scary when you're prepared.

Keep:

✔ Receipts

✔ Mileage logs

✔ Spreadsheets or accounting software

✔ Business-use percentage calculations

✔ Separate business bank account (huge for clean records)

💬 Final Thought

With the right strategy, self-employed taxpayers can keep more profit in their pocket. Don’t wait until tax season to get organized — smart planning now leads to maximum deductions later.

Need help keeping more of what you earn?

📞 904-980-8191

📧rdavis@corelogixconsulting.com

🌐 CoreLogixConsulting.com

➡️ Book a free consultation today — take control of your taxes before they take control of you.