As a freelancer, solopreneur, or self-employed pro, you’re wearing every hat imaginable— and that includes an accountant (whether you like it or not). The upside? There are some tax write-offs and deductions that can keep more of your hard-earned cash where it belongs: in your wallet.
With the right moves and tools like Opolis, you can master the “freelancer taxes” game and save big.
1. Home Office Deduction: Carving Out Your Work Zone
If you work from home, you could be eligible for the home office deduction. Deduct part of your rent, mortgage, utilities, and even your Wi-Fi. The IRS only asks that you designate a specific spot for work— so maybe steer clear of the kitchen counter for this one.
- How It Works with Opolis: Use Opolis’s freelancer payroll system to track your expenses and keep them organized. Opolis can help simplify your financial tracking.
- Pro Tip: Small space? No problem. Measure out your workspace and apply that square footage to calculate eligible expenses.
2. Health Insurance for the Self-Employed
Freelancer health insurance is not only a necessity— it can be deductible! If you’re paying out-of-pocket for your health, dental, and even long-term care insurance, you might be eligible for a self-employed health insurance deduction.
- How Opolis Can Help: Opolis offers the best freelancer health insurance options, with coverage levels that rival big corporations. Plus, you’ll get comprehensive plans that include freelancer insurance and benefits that are typically tricky to find for solopreneurs.
- Pro Tip: Covering a spouse or dependents? That counts too! And the larger your insurance premiums, the more you might be able to write off to reduce your taxable income.
3. Business Supplies and Equipment: Essential Gear
From notebooks to high-powered laptops, every piece of gear you buy for your work can often be deducted. This category also includes any software, subscriptions, and basic office supplies you need to run your freelance business.
- Eligible Expenses with Opolis: If you’re using Opolis for freelance payroll services, you can streamline your expenses so you don’t miss a deduction come tax time.
- Pro Tip: Stay organized with your receipts. Track each purchase and expense, making sure it’s used for work.
4. Freelancer Retirement Plans: Future-You Will Thank You
Saving for retirement is crucial. Freelancers often overlook retirement plans, but a Solo 401(k) or SEP IRA can allow you to save for the future and get a tax deduction for it.
- Options from Opolis: Opolis offers retirement plans tailored for solopreneurs, from freelancer retirement plans to solopreneur retirement plans. With high contribution limits, these plans give you more control over your future while helping you lower your current tax bill.
- Pro Tip: Not only does contributing to a retirement plan lower your taxable income, but it also gives you a financial cushion as you build your freelance empire.
5. Insurance Beyond Health Coverage
Your insurance needs likely go beyond health alone. As a freelancer, you might need business insurance, liability insurance, and even equipment coverage. The great news? Many of these premiums may be deductible.
- Opolis Insurance Benefits: Through Opolis, you get access to a wide array of freelancer insurance options, from liability to equipment protection, so you can get the coverage you need without the corporate hassle.
- Pro Tip: Deducting multiple types of insurance can lead to significant tax savings, so keep track of each policy’s premiums.
6. Travel Expenses: Deductions On the Road
Whether you’re meeting clients or attending a conference, a lot of travel expenses can be deductible. Plane tickets, hotels, rental cars, and even meals are often eligible deductions, as long as they’re business-related.
- Get Organized: Freelancers can keep tabs on travel expenses and easily categorize these costs. This makes sorting your business expenses at tax time a breeze.
- Pro Tip: Keep a record of the business purpose for each trip, including client meetings or networking events, to substantiate your deductions.
7. Meals and Entertainment: Coffee Meets and Client Lunches
You can deduct up to 50% of meal costs if they’re for business purposes, which could mean that coffee shop brainstorming sessions or client lunches are tax-friendly.
- Maximizing with Opolis: Use Opolis’s payroll tracking and your own bookkeeping to easily log and categorize these costs. Keeping it organized makes tax season way less stressful.
- Pro Tip: Note who you were with and the purpose of each meeting on your receipts to avoid any IRS red flags.
8. Professional Development and Education
Continuing education is more than just a boost for your skills. Courses, conferences, and workshops related to your freelance work are often eligible as write-offs.
- Opolis Tracks It for You: Opolis can streamline tracking these costs, making it easy to list these items as expenses on your taxes.
- Pro Tip: Education that directly benefits your freelance business can be a significant deduction. Track these expenses carefully to reduce your taxable income.
9. Marketing and Advertising
From designing a website to running social media ads, all those marketing costs are essential— and deductible. Marketing write-offs can include website fees, paid ads, and even those business cards you just designed.
- Use Opolis for Clarity: With Opolis’s integrated services, you get help tracking your expenses.
- Pro Tip: Separate out your marketing expenses throughout the year so you can identify what’s working and adjust as needed.
10. Business Entity Formation Costs
Thinking of setting up an LLC or another business entity to give your freelance business more structure? Any fees related to setting up as a sole proprietorship, LLC, or other entity can be deductible.
- Opolis Makes Formation Easy: Opolis offers entity formation support for freelancers and independent workers, making the process simple and more affordable. This setup can come with tax advantages, too.
- Pro Tip: Entity formation can provide legal protection and also help reduce your taxable income, so consider the benefits of formalizing your freelance business.
11. Bank Fees and Interest on Business Loans
If you have a business credit card or pay fees on a business bank account, those expenses are deductible. Interest on business loans for your freelance operations can be written off, too.
- Opolis Keeps It Organized: Use Opolis for payroll services and your own bookkeeping to track these small but important expenses. These fees add up and you don’t want to miss any deductions!
- Pro Tip: Regularly check your statements to stay on top of fees, and make sure everything’s logged and categorized.
Wrapping Up: Keep Your Taxes Light and Your Write-Offs Right
Tax time as a freelancer doesn’t have to be a hassle. By partnering with Opolis for freelancer payroll, health insurance, and retirement options, you can get serious tax savings.
Our services simplify everything from entity formation to health insurance for freelancers, making it easier to maximize your deductions and lower your tax bill. Get organized, stay proactive, and let Opolis help you make the most of every tax write-off available!
Reach out to us at [email protected] to get started.