9 Powerful Tax Deductions for the Self-Employed

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Let’s face it—when you’re self-employed, it can feel like the IRS has a VIP pass to your bank account. You hustle, invoice, collect payments… and then taxes show up and swipe a big chunk of your profit.

Here’s the good news: self-employed people also have some of the BEST tax deductions available—if you actually use them.

In this edition of Financial Horizons, we’re going to walk through 9 key deductions many freelancers, consultants, coaches, and gig workers either underuse or completely miss:

1. Phone and internet costs
2. Health insurance premiums (in certain situations)
3. Meals
4. Your car
5. Subscriptions
6. Business mileage
7. Rent
8. Educational expenses
9. Home office

The goal is simple: help you keep more of what you earn—legally and strategically.

1. Phone and Internet Costs

If you use your phone and internet for your business—and almost every self-employed person does—you may be able to deduct the business portion of those costs.

Examples:

• Client calls, Zoom meetings, and prospecting
• Uploading content, managing websites, running ads
• Email, messaging apps, and CRM tools

A few tips:

• If you use one phone for business and personal, document your percentage of business use as reasonably as possible.
• Internet used to run your business (research, client work, marketing, etc.) can often be partially deductible.

This isn’t just “a bill”—it’s part of the infrastructure that powers your income.

2. Health Insurance Premiums (When You Qualify)

Many self-employed individuals pay for their own health insurance. Under current rules, if you meet specific requirements, your health insurance premiums (and sometimes dental/long-term care premiums within limits) may be deductible as an adjustment to income.

This can apply if:

• You’re self-employed and have a net profit
• You’re not eligible for employer-sponsored coverage through your own job or a spouse’s job

Because health insurance is often a major monthly expense, missing this deduction can mean losing thousands over time.

3. Meals

No, you can’t write off every lunch just because you thought about business while you ate. But legitimate business meals may be deductible under current IRS rules.

Potentially deductible meals might include:

• Meeting a client or prospect to discuss business
• Meals while traveling on an overnight business trip
• Certain team or contractor meetings (with proper documentation)

Key is documentation:

• Who you met with
• The business purpose
• Date, amount, and location

Treat it like a professional, not a loophole—and the deduction will work for you, not against you.

4. Your Car

If you use your vehicle for business, you may be eligible for a deduction based on actual expenses or the standard mileage rate, subject to current rules.

Business use of your car can include:

• Driving to meet clients
• Traveling to job sites
• Trips to the bank, post office, or supply stores for your business

What usually does not count:

• Commuting from home to a regular office (if you have one)

To maximize this deduction, you need:

• A mileage log (app or notebook)
• Clear records of business vs. personal miles

A well-documented vehicle deduction can be a big money saver for self-employed people who are on the road frequently.

5. Subscriptions

Think about all the subscriptions that keep your business running:

• Design tools, CRM software, and email marketing platforms
• Industry-specific software (for coaches, creators, consultants, trades, etc.)
• Cloud storage, password managers, and productivity apps

If a subscription is ordinary and necessary for your trade or business, it may be deductible.

The mistake many self-employed folks make?
They pay these monthly charges on autopilot but don’t categorize them correctly at tax time—so deductions get lost.

6. Business Mileage

Separate from the general “car” category, business mileage is so critical it deserves its own spotlight.

Even if you don’t want to mess with actual expense tracking, you can often:

• Track miles driven for business using a mileage app or log
• Multiply your business miles by the IRS standard mileage rate for that year

This can add up fast for real estate agents, mobile service providers, home-visit professionals, and anyone who does client work on the move.

Again, the key is documentation. “I think I drove a lot” doesn’t count.

7. Rent

If you rent:

• Office space
• Co-working space
• A studio or workshop

…those rent payments are often deductible as business expenses, assuming they’re used for your work.

For self-employed people who need physical space to serve clients, create products, or provide services, rent is usually one of the largest recurring deductions.

Even if you primarily work from home but occasionally use a co-working space for client meetings or focus days, those fees could be deductible when tied to business use.

8. Educational Expenses

You are your biggest asset—and the tax code often recognizes that.

If you invest in continuing education that is directly related to your current business, it may be deductible. Examples include:

• Courses, workshops, and certifications that improve your skills
• Industry conferences and seminars
• Books or training materials relevant to your profession

The key: the education must maintain or improve skills required in your present work, not qualify you for a completely new trade.

Self-employed high performers are always learning. Just make sure the tax code is helping you, not just your credit card.

9. Home Office

The home office deduction is one of the most misunderstood—and underused—deductions for the self-employed.

If you:

• Use a specific area of your home regularly and exclusively for business, and
• It’s your principal place of business (or where you meet clients, depending on your situation)

…you may qualify for this deduction.

Depending on the method used (simplified or regular), you may be able to deduct a portion of:

• Rent or mortgage interest
• Utilities
• Property taxes
• Certain repairs and maintenance

Many self-employed people are afraid this deduction is a “red flag.” The truth: if you qualify and document it properly, it’s normal and legitimate. Don’t leave free money on the table just because of myths.

Stop Leaving Self-Employed Money on the Table

When you’re self-employed, you carry all the risk—so you should absolutely claim all the legal rewards the tax code offers you.

These nine deduction categories—

• Phone & internet
• Health insurance
• Meals
• Car & business mileage
• Subscriptions
• Rent
• Educational expenses
• Home office

—can dramatically change how much tax you pay over time.

But here’s the catch:

The IRS won’t remind you what you could have deducted.
If you don’t claim it, you lose it.

That’s why having a strategic tax partner matters.

🔗 Read more at: https://thecrgroupllc.com/financial-horizons

📅 Want a self-employed deduction deep-dive tailored to your situation?
Book a consultation with Dr. Cardenas

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in tax planning and financial strategy, Dr. Cardenas helps self-employed professionals, entrepreneurs, and business owners legally reduce taxes, maximize deductions, and build lasting wealth. Learn more at thecrgroupllc.com

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal, tax, or investment advice. Rules for deducting phone, internet, health insurance, meals, vehicle expenses, subscriptions, rent, education, and home office costs change over time and depend on your specific situation. You should consult with a qualified tax professional and review current IRS guidance before implementing any strategy discussed here. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance and investment strategies may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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