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Freelance Tax Deduction Calculator

Freelancers leave thousands on the table by missing deductions. This calculator shows you exactly how much your business deductions reduce your tax bill — in real dollars, not just percentages.

Freelance Tax Deduction Estimator

Track your business deductions and estimate your tax savings

Simplified method: $5/sq ft (max 300 sq ft = $1,500)

📑Total Deductions
$10,210.00
💰Est. Tax Savings
$2,246.20
22% marginal rate
🏠Home Office Deduction
$750.00
150 sq ft × $5
Home Office (Simplified)$750.00
Computer / Equipment$2,000.00
Software Subscriptions$600.00
Internet (12 months)$960.00
Phone (12 months)$600.00
Health Insurance (12 months)$4,800.00
Professional Development$500.00
Other Business Expenses$0.00
Total Deductions$10,210.00

Your estimated deductions of $10,210.00 could save you approximately $2,246.20 in federal taxes (at the 22% bracket). Keep receipts for all business expenses.

Note: Uses the simplified home office method ($5/sq ft, max 300 sq ft). Monthly expenses (internet, phone, health insurance) are annualized. Tax savings estimate uses a flat 22% marginal rate — your actual savings depend on your income bracket and filing status. Self employed health insurance is deductible on Schedule 1. Consult a tax professional for your specific situation.

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Freelance tax deduction calculator showing how much business deductions save you

Frequently Asked Questions

What is the biggest tax deduction for freelancers?+

The qualified business income (QBI) deduction is often the largest — it lets you deduct up to 20% of your qualified business income from your taxable income. After that, the home office deduction, health insurance deduction, and retirement contributions (SEP IRA up to $70,000 in 2026) are typically the biggest.

How much do business deductions actually save me?+

It depends on your tax bracket. A $1,000 deduction saves you $220 if you're in the 22% bracket, or $320 if you're in the 32% bracket. But deductions also reduce your self-employment tax (an additional 15.3% savings on the deduction amount). This calculator shows your total savings across both taxes.

Can I deduct my home office as a freelancer?+

Yes, if you use part of your home exclusively and regularly for business. The simplified method gives you $5 per square foot (up to 300 sq ft = $1,500 max). The regular method deducts actual expenses (rent/mortgage interest, utilities, insurance) proportioned by office square footage. The deduction reduces both income and SE taxes.

What is the biggest tax deduction for freelancers?

The qualified business income (QBI) deduction is often the largest — it lets you deduct up to 20% of your qualified business income from your taxable income. After that, the home office deduction, health insurance deduction, and retirement contributions (SEP IRA up to $70,000 in 2026) are typically the biggest.