Working as a freelancer or gig worker offers a lot of flexibility. But one downside is that you’re responsible for managing your own taxes. There’s no employer withholding taxes from your paycheck, and you’ll need to determine which of the common gig write-offs you can claim as unique to your biz.
Fortunately, the right tax software can help you organize your income, document expenses and ensure you don’t double-pay any taxes in your filing. H&R Block makes this process easy for freelancers and gig workers, which is one reason why they’re the CNET Editor’s Choice for best tax software.
Here’s what to know about write-offs if you did freelance or gig work last year.
Why tax write-offs matter more for freelancers
When you’re self-employed, deductions affect more than just your taxable income; they also impact how much you owe in self-employment taxes.
Most W-2 employees split payroll taxes with their employer, with each side paying their part of the FICA tax. But freelancers and gig workers pay the full share of Social Security and Medicare taxes themselves. In some scenarios, you can deduct the «employer» half of your self-employment taxes.
There’s also a difference in how taxes are paid throughout the year.
- Employees have federal and state taxes withheld automatically from each paycheck, but this isn’t the case for freelancers and gig workers.
- Self-employed workers should be making quarterly estimated tax payments instead.
- Those payments are based on your projected income and deductions, making accurate reporting even more important.
Errors in income or deduction reporting can lead to underpayment penalties. H&R Block’s self-employed tools apply current tax rules so you know you’re working with the most up-to-date information.
Why gig income is harder to report
Gig workers often have multiple sources of income, which can mean more forms and paperwork to organize when tax season rolls around.
Before deductions can reduce your tax bill, your income must be reported correctly. But that can be challenging for gig workers who earn money across multiple platforms. Instead of receiving one W-2, freelancers often receive several 1099-NEC forms from different clients. Platform-based workers may earn income through apps like Uber, DoorDash or Instacart. H&R Block can handle income from multiple platforms and multiple tax forms all in one return.
There’s also the 1099-K, which tracks income received from payment platforms.
- Form 1099-K is typically issued when payments exceed certain thresholds.
- The federal threshold for receiving a 1099-K in 2025 is more than $20,000 in gross payments and 200 transactions.
- Even if you don’t receive a form, you still need to report that income on your return.
Importing or uploading tax forms can help reduce manual entry errors and make it easier to see how much you earned from each source. With H&R Block’s tools, freelancers can report side hustle income more accurately, helping ensure that deductions are applied to the right types of income.
What business expenses actually reduce your tax bill?
Different types of freelance and gig work come with different deductible costs, which is why there’s no universal list of deductions that applies to everyone.
For example, a rideshare or delivery driver may be able to deduct business-related mileage, while a freelance designer might deduct software subscriptions or equipment used for client work.
Someone running an online shop may be able to deduct platform or processing fees. Freelancers who use part of their home regularly and exclusively for work may qualify for the home office deduction.
Common business expenses for gig workers and freelancers may include:
- Mileage for work-related driving
- Office supplies and equipment
- Software and online tools
- Platform or transaction fees
- Home office expenses when eligibility rules are met
These deductions reduce your business profits, which can lower both your income tax and your self-employment tax. H&R Block’s interview-style process helps freelancers identify business-related expenses that fit their specific work situation.
H&R Block helps freelancers claim common and unique tax write-offs
For freelancers and gig workers, claiming both common and unique write-offs can help you set yourself up for success.
H&R Block’s self-employed filing options are designed to guide users through the process by helping them report their income accurately and identify common deductions. The software also prompts users to report their earnings even when no 1099 is issued.
This helps ensure that any income from platforms or side gigs is accounted for correctly before deductions are applied. Organizing your income first makes it easier to see which expenses are tied to your business activity and may qualify as write-offs.
According to the IRS, common tax write-offs include:
- Home office deduction. If you use part of your home for business, you may be able to deduct certain expenses.
- Mileage. If you drove a vehicle for business reasons, you may be able to deduct mileage expenses.
- Business meals. If you have a business meal with a client, or for business purposes, you may be able to deduct 50% of that expense.
The software also helps freelancers track their expenses based on how they earn money. Interview-style software asks questions about the type of work you do and the costs associated with it, like mileage, equipment, software or platform fees.
By claiming your expenses to your specific work activities, H&R Block helps users claim on their unique business deductions.
For freelancers comparing tax software, H&R Block Self-Employed is designed to handle multiple income sources and business deductions in one return. Some tax tools focus primarily on form entry, while others emphasize guided support for self-employment. H&R Block’s software combines both approaches, offering step-by-step guidance on income reporting and deductions, along with access to additional support from tax professionals when questions arise.
The bottom line
Maximizing freelance write-offs is understanding which expenses qualify and applying current tax rules correctly. With tools designed for gig worker taxes, like H&R Block Self-Employed, freelancers and gig workers can claim their expenses and find ways to save on their taxes.
