4 Self-Employment Expenses I Claim on My Taxes — and Why I’m Allowed To

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When you work for yourself, it’s important to know which expenses you’re eligible to claim. Read on to learn more. 

There are certain benefits to being a salaried employee. You generally get access to subsidized health insurance, paid time off, and a retirement plan that often comes with an employer match.

As a self-employed freelance writer, I don’t get those perks. I happen to have access to health insurance through my husband’s employer, but I certainly don’t get paid time off.

If I want to carve out time to travel with my family, I have to work extra in the weeks leading up to a trip to compensate. And while I can fund an IRA or solo 401(k) for retirement savings purposes, I don’t get any sort of employer match, since I don’t have an employer.

But one benefit of being self-employed is that I’m able to deduct certain expenses on my tax return. Here are four that I claim.

1. Internet service

Internet service is essential to my job. So claiming it on my taxes is an easy call. Not only can I claim home internet service, but I’m also allowed to claim fees I incur for internet service outside the home. So if, for example, I’m staying at a hotel that somehow doesn’t offer free internet, if I need to pay for it so I can stay in touch with clients, that’s an allowable expense.

2. Accounting fees

I’m a firm believer that anyone who’s self-employed should have an accountant. The fees mine charges count as a deductible expense because I have to file taxes and have my accounts managed. Paying someone else to do this also ensures my finances are managed properly.

3. Financial publications

As someone who writes about personal finance and investing money, there are certain publications I subscribe to that serve as sources for my work. These are considered deductible expenses because I’m not just reading them for fun. I’m using them to help create content that I’m paid for.

4. Business equipment

I don’t need a ton of fancy equipment to do my job. But I do need a working laptop, keyboard, and monitor. These are all deductible expenses for me. But to be clear, it’s not as if I’m buying a new laptop every four months. And that’s something the IRS might question. However, if I replace my laptop once every three years, that’s certainly reasonable.

What all of these expenses have in common

All of the expenses above make it possible for me to do my job and manage my self-employment income. If you’re self-employed in any capacity, whether on a full-time or part-time basis, it pays to make a list of your business expenses and talk to an accountant about deducting them on your taxes. And you may be surprised at what you’re allowed to claim.

Let’s say you perform in a band on weekends for extra money on top of your regular job. If you need to buy makeup and hair products to look presentable for those gigs, those may be eligible expenses. The same might hold true for the clothing you perform in.

To be clear, I am not a tax professional, and this should not be taken to mean that you can definitely deduct such expenses if you moonlight as a musician. This is an example, and you’ll need to consult an accountant for guidance on your specific situation. The point, however, is to be aware that keeping good track of your business expenses could result in a pretty nice tax break at the end of the year.

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