Every dollar you legitimately deduct on Schedule C lowers both your federal income tax AND your 15.3% self-employment tax. Here are 11 overlooked write-offs for independent contractors.

  1. Self-Employed Health Insurance Deduction: 100% of health, dental, and qualifying long-term care insurance premiums paid for yourself and your family can be deducted on Schedule 1.
  2. Home Office Deduction: Dedicated workspaces in your rented or owned home qualify for either the simplified $5/sq ft method or actual percentage of rent, utilities, and internet.
  3. Internet & Phone Bill Percentage: The business-use percentage of your monthly smartphone and high-speed home internet plan.
  4. Software Subscriptions: Adobe Creative Cloud, Figma, GitHub, Notion, Canva, hosting, and domain registrations.
  5. Professional Development: Online courses, industry conferences, books, webinars, and coaching directly related to maintaining or improving your trade skills.
  6. Payment Processing Fees: The 2.9% + $0.30 fees charged by Stripe, PayPal, Square, or Upwork platform cuts.
  7. Retirement Plan Contributions: Solo 401(k) and SEP-IRA contributions that shelter thousands from current-year income taxes.
  8. Business Meals: 50% deduction on client meals where legitimate business matters were discussed.
  9. Bank & Credit Card Fees: Monthly business account maintenance fees, wire fees, and credit card annual fees on dedicated business cards.
  10. Equipment & Section 179: Immediate expensing of laptops, cameras, microphones, monitors, and ergonomic office chairs.
  11. Professional Services: CPA fees, bookkeeping costs, legal contract reviews, and registered agent fees.