What is a tax write-off?

A tax write-off (or deduction) is an ordinary and necessary business expense that you can subtract from your gross income to lower your taxable net profit.

How much do tax deductions save me?

Deductions save you money by reducing your taxable income. Your actual savings equal the deduction amount multiplied by your combined marginal tax rate (self-employment tax + income tax).

Can I write off my home office?

Yes, if you use a specific area of your home regularly and exclusively for your business. You can use the simplified method ($5 per square foot up to 300 sq ft) or the actual expense method.

Are business meals 100% deductible?

No. Typically, business meals with clients or while traveling are only 50% deductible, and you must document the business purpose and attendees.

Can I write off my personal cell phone?

You can write off only the business percentage of your cell phone bill. If you use your phone 60% for work and 40% for personal calls, you can deduct 60% of the bill.

What is the self-employment tax rate?

The self-employment tax rate is 15.3%, which covers Social Security (12.4%) and Medicare (2.9%) on your net business earnings.

Do I need receipts for deductions under $75?

While the IRS does not require receipts for travel expenses under $75 (except lodging), you must still document the date, amount, location, and business purpose of the expense.

What is a Schedule C?

Schedule C (Form 1040) is the IRS tax form used by sole proprietors and single-member LLCs to report net profit or loss from business activities.

Can a hobby have tax write-offs?

No. Under current tax laws, hobbies cannot claim tax deductions. You must demonstrate a clear profit motive for the activity to qualify as a business.

What is the difference between a tax deduction and a tax credit?

A tax deduction reduces your taxable income, saving you a percentage based on your tax bracket. A tax credit reduces your actual tax bill dollar-for-dollar.

business calculator

Freelance Tax Deduction Calculator

Estimate tax savings from eligible business expense write-offs.

Formula Verified by Dr. Marcus Sterling, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Home Office Space

Home office space (sq ft)sq ft

Total home space (sq ft)sq ft

Monthly Shared Expenses

Monthly rent/mortgage$

Monthly utilities$

Monthly internet$

Other Business Expenses

Annual business mileagemiles

Equipment purchases$

Other business expenses$

Your tax rate (%)%

Results

Estimated Tax Savings

$1,771

Total Deductions$7,082

Home Office Deduction$2,700

Vehicle Mileage Deduction$2,010

Internet Deduction (Business)$672

Formula

Freelance deduction formulas

Total deductions = Home office + Mileage (miles × $0.67) + Internet (70%) + Purchases + Expenses

Tax savings = Total deductions × Tax rate. Home office is prorated based on square footage.

Step by step

How the calculation works

1Enter home office area and total home area to calculate home office deduction percentage.
2Input monthly expenses for rent, utilities, and internet to determine yearly deductions.
3Provide annual business mileage and equipment/other expenses.
4Specify your estimated marginal tax rate to calculate direct tax savings.

Related guides

Learn more about this calculation

Guide

Freelance Tax Write-Offs: Calculator Guide and Recordkeeping Checklist

Estimate freelance business deductions with the DTC calculator, understand home office, mileage, internet, equipment, and other expense inputs, and separate planning math from tax filing advice.

Site Guide

Saving and Exporting Calculations: How to Keep and Reuse Your Results

Learn when to save a DTC calculation locally, when to export to Excel or CSV, when to print to PDF, and how to avoid losing the assumptions behind important results.

business calculator

Freelance Tax Deduction Calculator

Estimate tax savings from eligible business expense write-offs.

Formula Verified by Dr. Marcus Sterling, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Home Office Space

Home office space (sq ft)sq ft

Total home space (sq ft)sq ft

Monthly Shared Expenses

Monthly rent/mortgage$

Monthly utilities$

Monthly internet$

Other Business Expenses

Annual business mileagemiles

Equipment purchases$

Other business expenses$

Your tax rate (%)%

Results

Estimated Tax Savings

$1,771

Total Deductions$7,082

Home Office Deduction$2,700

Vehicle Mileage Deduction$2,010

Internet Deduction (Business)$672

Summary

Key output metrics

Estimated Savings

$1,771

Direct tax bill reduction.

Total Deductions

$7,082

Total business expenses written off.

Home Office Cut

$2,700

Prorated housing portion.

Mileage Saved

$2,010

Vehicle miles write-off.

D3 visualization

Tax write-off breakdown

Visualize how your business deductions are split across home office, travel, and other business expenses.

Home Office$2,700

Vehicle Mileage$2,010

Internet (Business)$672

Equipment Purchases$1,200

Other Expenses$500

Formula

Freelance deduction formulas

Total deductions = Home office + Mileage (miles × $0.67) + Internet (70%) + Purchases + Expenses

Tax savings = Total deductions × Tax rate. Home office is prorated based on square footage.

Step by step

How the calculation works

1Enter home office area and total home area to calculate home office deduction percentage.
2Input monthly expenses for rent, utilities, and internet to determine yearly deductions.
3Provide annual business mileage and equipment/other expenses.
4Specify your estimated marginal tax rate to calculate direct tax savings.

Related guides

Learn more about this calculation

Guide

Freelance Tax Write-Offs: Calculator Guide and Recordkeeping Checklist

Estimate freelance business deductions with the DTC calculator, understand home office, mileage, internet, equipment, and other expense inputs, and separate planning math from tax filing advice.

Site Guide

Saving and Exporting Calculations: How to Keep and Reuse Your Results

Learn when to save a DTC calculation locally, when to export to Excel or CSV, when to print to PDF, and how to avoid losing the assumptions behind important results.