1099 Tax Deductions: The Self-Employed Write-Off List

The big deductions most 1099 workers miss

• Home office — a portion of rent/mortgage, utilities, and insurance for the space you use *regularly and exclusively* for work. The simplified method is $5/sq ft up to 300 sq ft.
• Vehicle / mileage — business miles at the IRS standard mileage rate (set annually), or the actual-cost method. Track every trip.
• Self-employed health insurance — premiums for you and your family, deducted above the line (not subject to the 7.5%-of-income floor).
• Retirement contributions — SEP IRA, SIMPLE IRA, or solo 401(k) contributions reduce taxable income, often by a lot.
• Half of your self-employment tax — automatically deductible against income tax.
• The 20% QBI deduction — most sole proprietors deduct 20% of qualified business income before income tax.

Everyday business expenses

• Phone & internet — the business-use percentage of your bills.
• Software & subscriptions — tools, apps, cloud storage, design assets, professional memberships.
• Supplies & equipment — laptops, cameras, tools, office supplies (large purchases may be expensed immediately under Section 179).
• Business travel — flights, hotels, and transportation for work trips.
• Meals — 50% of business meals with clients or while traveling.
• Professional services — fees you pay to accountants, lawyers, and contractors.
• Marketing & advertising — website, ads, business cards, portfolio hosting.
• Education — courses and certifications that maintain or improve your current business skills.
• Bank & payment fees — merchant processing, PayPal/Stripe fees, business banking charges.

Deductions vs. the QBI deduction — they stack

Business expenses come off first to get your net profit. Then the 20% QBI deduction and the standard deduction come off your income before the brackets apply. They're not either/or — a freelancer takes their expenses *and* QBI *and* the standard deduction. That layering is why effective tax rates on 1099 income are often lower than people fear.

What you generally can't deduct

• Personal living expenses or commuting from home to a regular workplace.
• Clothing that's suitable for everyday wear (even if you only wear it for work).
• The full cost of meals (only 50% is deductible) or entertainment (generally 0%).
• Expenses without a clear business purpose or any documentation.