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Tax Strategy6 min readMar 17, 2026
Maximizing Deductions for Self-Employed Individuals
Self-employed individuals have access to unique tax deductions. Learn how to take advantage of every one to minimize your tax burden.
Tax Deductions for Self-Employed Individuals
Being self-employed comes with unique tax advantages if you know where to look.
Top Deductions for the Self-Employed
Self-Employment Tax Deduction
You can deduct the employer-equivalent portion of your self-employment tax (50% of what you pay).
Health Insurance Premiums
If you pay for your own health insurance, you can deduct 100% of premiums for yourself, your spouse, and dependents.
Home Office Deduction
- Simplified method: $5 per square foot, up to 300 sq ft ($1,500 max)
- Regular method: Calculate actual expenses based on percentage of home used
Business Vehicle Expenses
- Standard mileage: 67 cents per mile for 2025
- Actual expenses: Gas, insurance, repairs, depreciation
Retirement Plan Contributions
- SEP IRA: Contribute up to 25% of net earnings (max $69,000)
- Solo 401(k): Higher contribution limits with employee and employer portions
Professional Development
- Books, courses, and conferences related to your business
- Professional memberships and subscriptions
Technology and Equipment
- Computers, software, phones used for business
- Section 179 deduction for large equipment purchases
Need help tracking and maximizing your deductions? Our team specializes in self-employed tax optimization.