Self-Employed Tax Deductions Calculator 2023-2024

Many turned to self-employment in the wake of the pandemic. People jumped into everything, from being online merchants to content creators and influencers on platforms like TikTok, OnlyFans, and Instagram.

If this is you, you may be wondering, “Now that I am making money from my self-employed business, how can I save money on my taxes?” and “What are some self-employed expenses I can deduct?”

To help you uncover tax write-offs specific to your business, we created a fun and engaging Self-Employed Tax Deductions Calculator that will help you uncover self-employed tax deductions to help you save on your taxes whether you are a dog walker or a content creator.

Our calculator allows you to select your specific self-employed industry (over 30) and discover what self-employed business tax write-offs and expenses you can deduct as a 1099 independent contractor or freelancer, so you don’t leave any money on the table.

Try the self-employment tax calculator for deductions now and learn more about what write-offs you might be eligible for.

Self-employment tax deduction calculator

Explore tailored tax write-offs with our self-employed tax deductions calculator. Ideal for contractors or content creators, it covers more than 30 industries and brings you one step closer to understanding self-employment deductions.

Select your business niche to discover your potential deductions, and ensure that as a 1099 independent contractor or freelancer, you maximize your write-offs and leave no money unclaimed. This is a great tool to help you save on taxes with a personalized approach to self-employed business expenses.

Do I need to pay self-employment taxes?

Great question! Generally, individuals who are self-employed, such as freelancers or those running their own businesses or side hustle are required to pay self-employment taxes if their net earnings from self-employment were $400 or more. Why? The IRS requires these taxes to cover Social Security and Medicare contributions.

If you’re trying to understand and determine what taxes you owe, a self-employed tax calculator and the self-employed deduction calculator can be really valuable tools.

To work through some of the complexities of self-employment taxes, people often use tools like a self-employed calculator to make sure their calculations are accurate and maximize available deductions while filing taxes responsibly.

How much are self-employment taxes before deductions?

Handling self-employment taxes can feel like figuring out a puzzle of Social Security and Medicare contributions. Self-employment taxes cover Social Security and Medicare contributions for individuals who are self-employed. The tax amount can be a bit of a moving target, but tools like a self-employment tax calculator can give you a heads-up on what to expect.

The self-employment tax rate is 15.3%, where 12.4% is for Social Security and 2.9% is for Medicare. Additional Medicare taxes apply to self-employment income over:

• $125,000 for married, filing separately
• $250,000 for married, filing jointly
• $200,000 for everyone else

Now, here’s the cool part: deductions. Deductions–including those for a home office for those operating their business from home, business expenses, or healthcare expenses–can play a crucial role in helping reduce your taxable income. 

Navigating the intricacies of filing self-employment taxes is simplified through resources like these to help you be more accurate in your calculations, make sure you’re not missing out on potential perks, and determine potential write-offs for the self-employed.

How do tax deductions lower self-employment taxes?

Utilizing deductions is an important but also necessary strategy for self-employed individuals to lower their taxable income. In simple terms, deductions reduce your overall income that can be taxed. From mileage and equipment to health insurance premiums, each deductible expense chips away at your taxable income. 

To make this process even easier, we created the self-employment tax deduction calculator. You might already be aware of deductions like business expenses, home office costs, or retirement contributions, but this tool helps you get even more granular. By selecting your industry, you can identify deductions that apply to your niche, like prizes for giveaways, app fees, and even the uniform you wear.

Writers, realtors, freelancers, and other self-employed individuals can leverage the insights offered by the self-employed tax deduction calculator to maximize deductions when filing self-employment taxes.

What are some common self-employment tax deductions?

Understanding where to start when it comes to self-employment taxes can feel like a big financial stressor, but deductions can take some of that weight off your shoulders.

• Home office: One of the most common self-employment tax deductions is a home office deduction. If your workspace at home is exclusively for your business, you can claim a portion of your rent or mortgage, utilities, and even some of your maintenance costs. 
• Vehicle expenses: Another common deduction is a vehicle expenses deduction. If you use your car for business purposes, whether it’s meetings or client visits, you can take a standard mileage deduction for your business miles driven or a portion of the actual costs for using your vehicle. The standard mileage deduction for 2023 is 65.5 cents per mile and 67 cents per mile.
• Health insurance: Health insurance premiums are pretty common as self-employed individuals can often deduct the cost of health insurance for themselves and their dependents.
• Retirement contributions: Don’t forget retirement contributions–setting aside funds for the future not only secures your financial well-being but can also reduce your taxable income.
• Travel expenses: For those who travel for their business, expenses related to business trips, such as accommodations and meals, can also be deducted.

Try to stay as organized as possible, keep consistent records, and hold onto all your receipts. You could also consider working with a tax expert to ensure you’re maximizing self-employment tax deductions. With a bit of strategic planning, you can take the confusion out of tax season while keeping more of your hard-earned money.

Self-employment tax deductions based on your career

Below is more information regarding the TurboTax Premium  tax deductions for some of the most popular careers.

Rideshare

Working as a rideshare driver for Uber or Lyft (and others) has tremendous tax advantages related to tax deductions for business use of your car, like the standard mileage deduction, which is 65.5 cents per business mile driven in 2023, but leveraging all deductions is key to maximizing your refund.

Common expenses that can be used as deductions include:

• Vehicle cleaning
• Passenger goodies
• Maintenance
• Parking and tolls

If you don’t claim the standard mileage deduction, you might be able to deduct other expenses from your income, lowering your taxes. Make sure to save all your receipts and track all expenses.

Review our guide on Tax Tips for Uber, Lyft and Other Car Sharing Drivers for more in-depth information.

Contractor

If you work as an independent contractor where your income is recorded on 1099’s, you have quite a few options when it comes to tax deductions. Common deductions include:

• Travel expenses
• Home office
• Supplies

While lesser-known deductions include:

• Retirement plan considerations
• Medical plans
• Cleaning services

Use our self-employed calculator and choose your most relevant job type to see the top deductions you may be eligible for.

Real Estate Agent

As a real estate agent, writing off your related business expenses can make a significant difference in lowering your taxes. One of the biggest areas to consider is maximizing tax deductions for the business use of your car. Taking the standard mileage deduction is usually the best option, but for some, the actual cost method works in their favor when the mile count is low.

In addition, gifts are given a lot in real estate, which also qualifies for a deduction. The IRS stipulates no more than $25 per recipient can be deducted. Marketing expenses such as advertising will make an impact as well. 

Finally, it’s good to understand that commissions from sales are not tax-deductible unless you pay them to another agent on your team, but you can deduct broker fees.

Caregiver

If you are working as a caregiver, you are most likely driving from your home to another location to take care of someone, and the business use of your car can be one of your biggest expenses. You will either be able to take the standard mileage deduction (65.5 cents per business mile for 2023) or deduct your actual car expenses like gas, repairs, and maintenance based on your business use, whichever is more. 

Make sure you keep track of your mileage driven and your actual expenses so that you can deduct your maximum expenses you’re eligible for. Some other expenses you don’t want to forget are:

• Uniforms
• Personal protective equipment (PPE)
• Advertising
• Cleaning supplies

Sole Proprietor

Overall, as a sole proprietor business, be aware that self-employed tax deductions should be a priority. Some top-level categories of expenses to always track are:

• Supplies
• Home office
• Bank fees
• Business meals
• Internet
• Utilities
• Legal
• Professional services

In addition to expenses from your self-employed business, personal expenses like charitable deductions or mortgage interest can be deducted as itemized deductions on your personal taxes as well. Get started planning for tax season with our Beginner’s Tax Guide for the Self-Employed.

Tutor

You may be wondering if tutoring makes you self-employed. It depends on whether you’re employed by a company as a tutor or if you started a tutoring business on your own with the intent to make money.

If you did start a tutoring business on your own with the intent to make a profit, you would be considered self-employed. When you’re self-employed, you’ll have to think about self-employment taxes if your net income is $400 or more, and you also may have to pay estimated taxes since you don’t have an employer to withhold taxes from your pay.

That said, there are so many expenses you can deduct related to your tutoring business to lower your taxes. If you are a tutor, keep track of your expenses like:

• Advertising
• Supplies
• Home office
• Mileage to travel to tutor your clients

Consultant

Consultants have many options when it comes to tax deductions. When setting up your business, the upfront costs of furniture, communication equipment, and depreciating assets can all be deducted from taxes. Fees, rent, utility bills, printing costs, and website hosting are also examples of items you can deduct.

For additional information, read our in-depth Top Tax Deductions for Consultants article.

Artist

With significant costs for supplies, artists have an advantage in that nearly all their core tools are tax-deductible. All types of artists can qualify, including makeup artists. Framing, internet, promotions, gallery fees, film, and processing all count towards deductions. If you earn income through art, then you’re usually able to claim these deductions.

Additionally, the Tax Cuts and Jobs Act created a new deduction for pass-through businesses like self-employed, side-giggers, and independent contractors, which allows businesses to deduct an amount equal to up to 20% of their net income.

Review our Musician’s Guide to Taxes: Top Tax Deductions for more in-depth information.

Airbnb

If you qualify, numerous deduction options can enhance the profitability for your Airbnb business. Options include expenses for the home or rental space, such as:

• Furniture
• Supplies
• Shared expenses
• Legal fees
• Repairs
• Property taxes

For maximum deductions, be sure to rent the property at least 15 days of the year. For other tips, review our Does Renting My Apartment On AirBnB Make Me Self-Employed article.

Delivery

Common self-employment expenses for delivery drivers include:

• Phone bill
• Courier bags
• Parking
• Tolls
• Gas
• Car maintenance
• Vehicle mileage

Many types of drivers can qualify for these deductions, such as those who work for:

• Pizza businesses
• Uber
• Amazon
• Newspapers

One of the most important topics to understand as a delivery driver first is whether or not you are an employee or an independent contractor receiving a W-2 or 1099 form. Additionally, as an independent contractor, you will need to pay quarterly estimated taxes. For more in-depth information, take a look at our article Filing Tax Return for Delivery Drivers: Tips and Advice.

Don’t worry about knowing all of the self-employed business deductions related to your specific industry.

No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.