Freelancer Tax Tips 2026: Smart Ways to Cut Your Tax Bill Before April 15

If you are searching “freelancer tax tips 2026” or “how to lower self-employment taxes,” now is the time to act.

Know What You Owe First

Freelancers pay both income tax and self-employment tax, which covers Social Security and Medicare.

Since there is no automatic withholding, you are expected to track income and make quarterly payments.

Take Advantage of the QBI Deduction

The Qualified Business Income deduction allows eligible freelancers to deduct up to 20 percent of their business income.

This is one of the biggest tax breaks available, but income limits and rules apply.

Max Out Business Deductions

Lowering your taxable income starts with claiming the right expenses:

• Home office costs

• Internet and phone bills

• Equipment and software

• Marketing and ads

• Courses and professional development

Accurate tracking can significantly reduce what you owe.

Track Mileage and Travel

Business travel adds up quickly and is often overlooked.

You can deduct:

• Mileage

• Flights and hotels

• Meals, parking, and tolls

Using apps to log expenses makes this easier and more accurate.

Use Retirement Accounts to Reduce Taxes

Contributing to retirement accounts can cut your tax bill now while building future savings.

Options include:

• SEP IRA

• Solo 401(k)

• Traditional IRA

These contributions may be tax-deductible depending on your plan.

Consider an LLC or S-Corp Setup

Structuring your business differently can unlock additional savings.

Electing S-Corp status may help reduce self-employment taxes by splitting income between salary and distributions.

Deduct Health Insurance and Use an HSA

Self-employed individuals can deduct health insurance premiums for themselves and their dependents.

A Health Savings Account also offers pre-tax contributions and can lower your taxable income.

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