Deep-dive guides to the most valuable deductions for self-employed professionals.
The home office deduction allows self-employed individuals to deduct expenses for the business use of their home. Whether you work from a dedicated room or a specific area, you can potentially deduct rent, utilities, insurance, and more. Two methods exist: simplified ($5/sq ft, max $1,500) and actual expenses (proportional share of home costs).
typical value
The vehicle deduction covers business use of your car. You can choose the IRS standard mileage rate (72.5¢/mile in 2026, 70¢ in 2025) or deduct actual expenses (gas, insurance, repairs, depreciation) proportionally. This is one of the largest deductions for many self-employed professionals.
typical value
Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents. This is an 'above-the-line' deduction (reduces AGI), making it especially valuable. It applies to medical, dental, and long-term care insurance.
typical value
Self-employed retirement contributions offer massive tax savings. Solo 401(k) allows up to $70,000 in annual contributions (2026). SEP IRAs allow 25% of net self-employment earnings. These deductions reduce both income tax and may impact SE tax calculations.
typical value
Section 179 allows immediate expensing of business equipment instead of depreciating over years. For 2026, you can deduct up to $1,250,000 of equipment purchases. This includes computers, software, office furniture, vehicles (with limits), and more.
typical value
AlphaTax's AI automatically identifies and categorizes deductions from your expenses.
Try AlphaTax Free