Self-Employed Tax Write-Offs: The Full Deduction Playbook
Self-employed individuals bear the full 15.3% self-employment tax on top of income tax — but the tax code provides a robust set of above-the-line deductions designed specifically for you. Using every eligible write-off is not aggressive planning; it is what these provisions exist for.
The SE tax deduction and health insurance
Two of the most powerful self-employed deductions live above the line, not on Schedule C. First, you can deduct half of your self-employment tax (15.3% on 92.35% of net profit) as an adjustment to income. Second, self-employed individuals not eligible for employer-sponsored coverage can deduct 100% of health, dental, and vision premiums for themselves, a spouse, and dependents. Neither requires itemizing, and both reduce adjusted gross income and overall tax liability.
Home office and business mileage
If you maintain a workspace used regularly and exclusively for business, you may deduct it — the simplified method is $5 per square foot up to 300 sq ft (max $1,500), or the actual-expense method deducts your home-office share of rent, utilities, and insurance. For business travel, the 2026 standard mileage rate is $0.725 per mile, covering gas, depreciation, maintenance, and insurance. Keep a contemporaneous log — date, origin, destination, and purpose for each trip. Estimates reconstructed later are weak evidence.
Retirement contributions: the biggest lever
Contributing to a Solo 401(k) or SEP IRA reduces taxable income dollar for dollar. A SEP IRA allows roughly 20% of net self-employment earnings, up to $70,000 for 2025; a Solo 401(k) combines employee and employer components and can allow more at moderate incomes. These contributions reduce the income on which both income tax and self-employment tax are figured, compounding the benefit. Contributions must be made by your tax filing deadline (including extensions); start early to maximize how much you can put in.
What is not deductible and how to keep clean records
Personal meals without a documented business discussion, commuting, personal clothing (unless a uniform unsuitable for everyday wear), and hobby expenses without clear profit intent are not deductible. The IRS expects contemporaneous records — receipts at purchase with the business purpose noted, a daily mileage log, and clear separation between business and personal bank accounts. Deductions reduce net profit, lowering both income tax and SE tax. Gigaverse categorizes business expenses and estimates quarterly taxes in real time — these are estimates, not tax advice.
Frequently asked
Can self-employed people deduct health insurance premiums?+
Yes. If you are self-employed and not eligible for coverage through a spouse's or your own employer (for unrelated W-2 work), you can deduct 100% of medical, dental, and vision premiums for yourself and your family. It reduces adjusted gross income and applies even if you do not itemize, but cannot exceed your net self-employment income.
How much does the SE tax deduction save?+
Self-employment tax is 15.3% on 92.35% of net profit, and you can deduct half of the SE tax as an above-the-line adjustment. At $50,000 net profit, SE tax is roughly $7,065 and half — about $3,533 — is deductible, saving your marginal income tax rate applied to $3,533. Gigaverse estimates this in real time — estimates, not tax advice.
What retirement account is best for a self-employed person?+
It depends on income and how much you want to contribute. A SEP IRA is simpler and allows roughly 20% of net self-employment earnings, up to $70,000 for 2025. A Solo 401(k) can allow larger contributions for higher earners via its employee and employer components. Both reduce taxable income; consult a tax professional to choose.
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Educational estimates only — not tax, legal, or investment advice. Gigaverse is not a bank; brokerage services via Alpaca Securities LLC (FINRA/SIPC). Outcomes depend on your individual circumstances.