Freelancer Deductions Checklist: What Counts, What Doesn't, and What Needs Proof

A deduction must be ordinary and necessary for your business, and you must be able to prove it. Use this checklist as a starting point, not as a guarantee — your facts decide.

Usually deductible (business portion only)

• Software, apps, and subscriptions used for client work
• Phone and internet — business-use percentage, with a note on how you estimated it
• Home office — simplified ($5 per sq ft up to a limit, check current rules) or actual-expenses method, only if the space is used regularly and exclusively for business
• Mileage for business trips at the current IRS standard rate, with a log (date, destination, purpose, miles)
• Supplies, printing, postage, and small equipment
• Professional fees, business insurance, licences, and education that maintains/improves skills for your current business
• Contractor payments (and remember: if you pay someone $600+ for services, you may need to issue them a 1099-NEC)

Usually NOT deductible as you think

• Personal meals, groceries, and everyday clothing
• Commuting from home to a regular workplace
• The full rent/mortgage of a home you also live in (only the qualifying home-office portion, if any)
• A personal phone plan at 100% when you also use it personally
• Expenses with no receipt, invoice, or log

Proof checklist for each deduction

Date, amount, vendor, business purpose, and receipt or statement. For mixed-use items, add one line: “Business use estimated at X% because …”. That one line is what turns a guess into a record.

Next: The Complete First 1099-NEC Guide · Schedule C for Beginners