Freelance Business Expense Checklist
Track every business expense and maximize your tax deductions. Organized by category with tax-deductible status for each item.
Tax Year 2025 — Tax rules change annually. Always verify deductions with a qualified tax professional or CPA. This checklist is for informational purposes only.
Software (SaaS)
Monthly subscriptions and one-time software purchases
| Expense | Typical Cost | Tax Deductible? | Notes | |
|---|---|---|---|---|
| $0-25/mo | Yes | 100% deductible as a business expense. Free tiers available. | ||
| $13-55/mo | Yes | Fully deductible if used for business. Mixed-use must be prorated. | ||
| $0-50/mo | Yes | Web hosting, domain names, and dev tools are fully deductible. | ||
| $0-25/mo | Yes | Business communication tools are fully deductible. | ||
| $0-30/mo | Yes | Business accounting and bookkeeping software fully deductible. | ||
| $3-20/mo | Partial | Deductible only for the portion used for business purposes. | ||
| $15-50/mo | Yes | Creative assets for client work are fully deductible. |
Hardware
Equipment, peripherals, and office furniture
| Expense | Typical Cost | Tax Deductible? | Notes | |
|---|---|---|---|---|
| $800-3,000+ | Yes | Under $2,500: deduct in full. Over $2,500: depreciate or use Section 179. | ||
| $200-800 | Yes | Business-use monitors are fully deductible in the year of purchase. | ||
| $50-300 | Yes | Ergonomic upgrades included. Fully deductible as business supplies. | ||
| $200-1,500+ | Yes | Office furniture for your home office qualifies as business equipment. | ||
| $300-1,200 | Partial | Deductible based on business-use percentage. Track personal vs business use. | ||
| $50-500 | Yes | Essential for client calls and remote collaboration. Fully deductible. | ||
| $100-500 | Yes | Business-use printers and supplies (ink, paper) are deductible. |
Marketing
Advertising, branding, and client acquisition expenses
| Expense | Typical Cost | Tax Deductible? | Notes | |
|---|---|---|---|---|
| $5-50/mo | Yes | Your portfolio site hosting and domain registration are business expenses. | ||
| $50-500+/mo | Yes | All business advertising costs are fully deductible. | ||
| $0-30/mo | Yes | Newsletter and email marketing tools for client outreach. | ||
| $25-200/yr | Yes | Networking materials and promotional items are deductible. | ||
| $0-99/mo | Yes | Marketing tools used for business promotion are fully deductible. | ||
| 5-20% of earnings | Yes | Platform service fees are deductible as business expenses. |
Legal / Admin
Insurance, legal services, and administrative costs
| Expense | Typical Cost | Tax Deductible? | Notes | |
|---|---|---|---|---|
| $400-800/mo | Yes | 100% deductible "above-the-line" for self-employed. Includes medical, dental, vision. | ||
| $30-100/mo | Yes | Professional liability (E&O) insurance is a deductible business expense. | ||
| $300-2,000/yr | Yes | Tax preparation and accounting fees are deductible. Often saves more than it costs. | ||
| $200-2,000+/yr | Yes | Business-related legal fees including contract review and entity formation. | ||
| $0-25/mo | Yes | Business banking fees, wire transfer fees, and payment processing charges. | ||
| $300-1,500/yr | Yes | Simplified method: $5/sq ft up to 300 sq ft. Must be exclusive business use. | ||
| $60-150/mo | Partial | Deduct the percentage used for business. Track business vs personal usage. | ||
| $100-500/mo | Yes | Coworking memberships and office rental costs are fully deductible. |
Professional Development
Education, training, and career growth investments
| Expense | Typical Cost | Tax Deductible? | Notes | |
|---|---|---|---|---|
| $10-500/course | Yes | Courses that maintain or improve existing skills for your business. | ||
| $100-2,000 | Yes | Industry certifications (AWS, PMP, etc.) that relate to your business. | ||
| $100-2,000/event | Yes | Registration, travel, and lodging for business-related conferences. | ||
| $10-50/book | Yes | Business-related books, industry publications, and journal subscriptions. | ||
| $100-500/mo | Yes | Business coaching that helps improve your professional performance. | ||
| $50-500/yr | Yes | Industry associations and professional organizations related to your work. |
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