5 Tax Deductions Most Self-Employed People Miss

Working for yourself comes with freedom — and a surprisingly long list of tax breaks. Yet every filing season we see self-employed clients overpay simply because they didn't know what they could claim. Here are five of the most commonly missed deductions.

1. The home office deduction

If you use part of your home regularly and exclusively for business, you can deduct a portion of your rent or mortgage interest, utilities, and insurance. The simplified method lets you claim $5 per square foot (up to 300 sq ft) with almost no paperwork.

2. Self-employment tax deduction

You pay both the employer and employee halves of Social Security and Medicare — but you get to deduct the employer half (roughly 7.65%) right off your income. This one happens automatically on a well-prepared return, but a surprising number of DIY filers miss it.

3. Health insurance premiums

If you're self-employed and pay for your own health, dental, or qualifying long-term care insurance, those premiums are often fully deductible — even if you don't itemize.

4. Mileage and vehicle costs

Every business mile counts. For 2025 the standard mileage rate is worth tracking carefully. Keep a simple log (a phone app works great) and the deduction adds up fast.

5. Retirement contributions

A SEP-IRA or Solo 401(k) lets you shelter a large chunk of income from tax while building your future. Contribution limits are far higher than a regular IRA.

---

Not sure which of these apply to you? That's exactly what we do. Book a consultation and we'll review your situation line by line.