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Tax Guide · 2025

15 tax deductions self-employed people most often miss

When you're a 1099 contractor or freelancer, every legitimate business expense you track lowers your taxable profit. Here are the write-offs people forget, and a simple way to capture them all year.

You don't pay tax on what you earn, you pay tax on what's left after business expenses. The catch is you can only deduct what you actually track. Here's the checklist.

The deductions worth tracking

  1. Business mileage. Often the biggest one. 70¢ per business mile in 2025. See the full mileage guide.
  2. Home office. If you use part of your home regularly and exclusively for work, you can deduct a portion of rent/mortgage, utilities, and internet.
  3. Phone & internet. The business-use share of your cell phone and home internet.
  4. Tools & equipment. The gear you buy to do the work, from power tools to laptops.
  5. Supplies & materials. The consumables you go through on jobs.
  6. Software & subscriptions. The apps and services you run your business on (including RoadFolio).
  7. Marketing & advertising. Business cards, a website, signage, online ads, flyers.
  8. Business insurance. Liability and other coverage for your work.
  9. Licenses, permits & fees. What it costs to stay legal in your trade.
  10. Continuing education. Courses, certifications, and training that maintain or improve your skills.
  11. Bank & payment fees. Card-processing fees and business bank charges.
  12. Contract labor. What you pay subcontractors and helpers (track 1099s).
  13. Health insurance premiums. Self-employed people can often deduct their premiums.
  14. Retirement contributions. SEP-IRA, Solo 401(k), and similar plans.
  15. Half of your self-employment tax. The IRS lets you deduct the employer-equivalent portion.
The pattern across all of these: you can only deduct what you can prove. The people who pay the least tax aren't doing anything shady, they just kept good records all year instead of scrambling in April.

The easy way to capture them

RoadFolio was built so a busy contractor or freelancer can track all of this without becoming a bookkeeper:

One app, everything in one place, ready to hand off when taxes are due.

Keep every receipt and every mile in one place

Track your mileage, expenses, and income free with RoadFolio, and walk into tax season organized.

Start free Read the mileage guide

FAQ

Do I need receipts for every deduction?

For most expenses, yes, keep a record (a photo of the receipt is fine) showing what you bought, when, and the business purpose. For mileage, keep a dated trip log. RoadFolio stores both.

Can I deduct a business expense that's also partly personal?

Usually you deduct only the business-use percentage, for example, the share of your phone or internet used for work. Keep it reasonable and documented.

Is software like RoadFolio deductible?

Business software and subscriptions you use to run your work are generally deductible business expenses. Ask your tax preparer about your specifics.

Keep reading

The 2025 mileage deduction guide → Free GPS mileage tracker → All of RoadFolio's features →