Do I need an LLC to deduct business expenses as a freelancer?

No. Sole proprietors file Schedule C and deduct business expenses without an LLC. An LLC is a legal structure, not a tax requirement for deductions.

Are Upwork and Fiverr service fees deductible?

Yes — platform service fees are deductible on Schedule C Line 10 (commissions and fees). Report your gross income, then deduct the fees.

How much should I set aside for taxes as a freelancer?

A safe rule of thumb is 25–30% of net profit. This covers self-employment tax (15.3% on the first $168,600 of net earnings) plus federal and state income tax.

Can I deduct my laptop?

Yes — the business-use percentage of your laptop is deductible under Section 179 in the year of purchase, or depreciated over 5 years. If it's used solely for work, that's 100%.

Schedule C · Self-Employed

Tax Write-Offs for Freelancers

Freelancers — writers, designers, developers, marketers, consultants — are self-employed and file Schedule C. Every cost of operating your freelance business reduces your taxable profit, and most freelancers are surprised how many ordinary expenses qualify.

Avg. annual savings$3,400

Track My Freelancer Write-Offs — $14/mo

Top 6 Tax Write-Offs for Freelancers

Home Office

100% deductible

The square footage of your home dedicated exclusively to client work. Most freelancers qualify for this deduction since their home is their primary place of business.

Schedule C, Line 30

Software & SaaS Tools

100% deductible

Figma, Notion, Slack, GitHub, Webflow, Google Workspace, Zoom, and any other subscription used to deliver client work. Fully deductible in the year paid.

Schedule C, Line 18

Internet & Phone

100% deductible

The business-use percentage of your home internet and mobile phone plan. Most full-time freelancers can justify 60–80% business use for internet.

Schedule C, Line 25

Contractor & Subcontractor Payments

100% deductible

If you hire other freelancers to help with a project, their fees are fully deductible. Collect a W-9 and file a 1099-NEC for anyone paid $600 or more.

Schedule C, Line 11

Education & Courses

100% deductible

Online courses, books, conferences, and workshops that improve skills you use in your existing freelance work. Education that prepares you for a new career does not qualify.

Schedule C, Line 18

Business Travel

100% deductible

Flights, hotels, and transportation for client meetings, industry conferences, or on-site project work. The primary purpose of the trip must be business.

Schedule C, Line 24a

Common Mistakes to Avoid

Failing to pay quarterly estimated taxes — freelancers owe self-employment tax plus income tax and should make quarterly payments to avoid penalties.
Reporting income net of platform fees (Upwork, Fiverr) — you must report gross income; the platform fees are a separate deduction on Line 10.
Mixing personal and business finances in the same bank account, making it nearly impossible to cleanly separate deductible expenses.
Skipping the self-employed health insurance deduction on Form 1040 Schedule 1 — this can save thousands.

Recordkeeping Tips

Open a dedicated business checking account and run all client payments and business expenses through it.
Export a monthly CSV from your business account and tag every transaction as business or personal within 30 days.
Save client contracts and project scopes — they establish business purpose for related travel and equipment purchases.
Track every platform fee (Upwork service fee, Stripe processing fee) separately so you can deduct them on Line 10.

Frequently Asked Questions

Related Professions

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This content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.