Tax season usually feels like a slow-motion car crash for your bank account. You see the numbers climbing, you realize how much is leaving your pocket, and suddenly you’re googling every possible way to keep that cash. Most common tax write offs aren't these massive, secret loopholes that only billionaires in the Caymans use. Honestly, they’re usually sitting right in front of you, buried in your grocery receipts or that corner of your bedroom you’ve turned into a makeshift office.
The IRS defines a deductible business expense as something both "ordinary and necessary." That sounds vague because it is. It gives you room to breathe, but it also creates a lot of anxiety. If you’re a freelance writer, a high-end laptop is ordinary. If you’re a plumber, it’s probably not.
The Home Office Myth and Reality
People are terrified of the home office deduction. There’s this persistent rumor that it’s an immediate "audit trigger." While that might have been true in 1995, the world has changed. Most of us work from home now. The IRS knows this.
To actually claim this, you need a space used exclusively for work. Your kitchen table doesn't count if you also eat tacos there at 9:00 PM. But if you have a spare room or even a partitioned-off corner of a studio apartment, you're in business. You can use the simplified method, which is basically $5 per square foot up to 300 square feet. It’s easy. No math-induced headaches.
However, if your home is expensive or huge, the regular method might save you way more. This involves calculating the percentage of your home used for work and applying that to your mortgage interest, utilities, and even home repairs. If your office is 10% of your house, then 10% of your electricity bill is suddenly a write-off. It adds up fast.
Self-Employment Taxes and Health Insurance
If you’re self-employed, you’re getting hit with the "employer" side of Social Security and Medicare. It hurts. It’s roughly 15.3%. But here’s the thing: you can deduct half of that self-employment tax from your adjusted gross income. It’s a "line 15" adjustment on your Schedule 1, meaning you don't even have to itemize to get it.
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Then there’s health insurance.
Health insurance premiums are one of the most common tax write offs for freelancers and small business owners, yet people forget they can often deduct 100% of what they pay for themselves, their spouse, and their dependents. You don't have to hit a specific threshold of your income to claim this, unlike the standard medical expense deduction. If you’re paying $600 a month for a Marketplace plan, that’s $7,200 off your taxable income. That is a massive chunk of change.
The Tricky Business of Wheels and Travel
Cars are a nightmare for record-keeping. You have two choices: the standard mileage rate or actual expenses. In 2024, the rate was 67 cents per mile. For 2025, it's adjusted for inflation.
- Mileage: You just track every work trip. Pro tip: commute miles from home to your first stop don't count. But from Client A to Client B? Absolutely.
- Actual Expenses: This is for the person who just bought a heavy SUV for their business or has a gas guzzler. You track gas, oil changes, tires, and—the big one—depreciation.
Wait. Don’t forget about Section 179. If you buy a vehicle for business that weighs over 6,000 pounds (think heavy trucks or large SUVs), you might be able to write off the entire purchase price in year one. It’s a favorite move for contractors, but it has to be used more than 50% for business. If you’re using it to take the kids to soccer, be careful with your percentages.
Education and Staying Sharp
The IRS actually likes it when you get smarter. If you take a class or go to a seminar to maintain or improve skills in your current trade, it's a write-off.
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But there’s a catch. You can't deduct classes for a new career. If you’re an accountant and you take a coding bootcamp to become a software engineer, the IRS says no. If you’re an accountant and you take a seminar on new tax laws? That’s gold. This includes books, professional journals, and even those pricey "masterclasses" if they actually relate to your job.
Retirement: The Double Win
Contributing to a SEP IRA or a Solo 401(k) is basically a gift to your future self that pays you today. You’re moving money from your taxable income into an investment account. For a SEP IRA, you can often contribute up to 25% of your net earnings.
Imagine you made $80,000. You put $15,000 into a SEP. Now, the IRS treats you like you only made $65,000. You saved thousands in taxes and you're $15,000 richer in the long run. It’s probably the smartest move on this entire list.
Marketing, Software, and the "Small" Stuff
Don’t ignore the $15 subscriptions. Your Adobe Creative Cloud, your Zoom Pro, your website hosting, your LinkedIn Premium—these are all most common tax write offs that people miss because they look small.
If you spend $200 a month on various SaaS tools, that’s $2,400 a year.
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Advertising counts too. This isn't just Super Bowl commercials. It’s your Facebook ads, your business cards, and even the cost of a meal with a potential client. Note on meals: as of late, the 100% deduction for business meals has expired, returning to the standard 50% deduction. So, if you spend $100 on a dinner with a lead, you get a $50 write-off. Still better than nothing.
What Most People Get Wrong
People often think "write off" means "free." It doesn't. You’re just not paying taxes on that money. If you’re in the 22% tax bracket, a $1,000 deduction saves you $220. You still spent $780. Don't buy junk you don't need just for the "write-off."
Also, hobby losses. If you have a "business" that loses money five years in a row, the IRS might reclassify it as a hobby. Hobbies don't get write-offs. You need to show a "profit motive." Keep a separate bank account. Seriously. Mixing your personal grocery spending with your business supplies is the easiest way to get your deductions disqualified during an audit.
Steps to Take Right Now
- Open a Separate Account: If you’re still using one debit card for everything, stop. Today. Get a dedicated business checking account so your paper trail is clean.
- Use an App: Apps like MileIQ or QuickBooks Self-Employed track mileage automatically. Your memory is not as good as a GPS log.
- Scan Receipts: Thermal paper fades. In three years, that $500 receipt from Best Buy will be a blank white slip. Use an app to snap a photo and store it in the cloud.
- Consult a Pro: A good CPA usually saves you more money than they cost. If you're making more than $50k in side-hustle or business income, the complexity usually justifies the fee.
- Review Subscriptions: Go through your credit card statement and find every recurring "pro" or "business" tool you pay for. Total them up.
Tax laws change. The numbers for the standard deduction and mileage rates fluctuate every single year. Staying on top of these most common tax write offs ensures you aren't leaving money on the table that the government is perfectly happy to let you keep.