Freelancer Write-Off Estimator
Add up your deductible business expenses and see what they’re actually worth in tax saved — at your real combined income + self-employment rate.
Your details
Rough figures are fine — you can refine later.
How we calculate this
We total your deductible categories, apply the 50% limit to meals, then value the deduction at your true marginal rate. All rates and caps come from our versioned tax-constants.json.
1. Total deductions. Sum of every category, with business meals counted at 50%.
2. Marginal saving rate. Your federal income-tax bracket at taxable income *after* the deductions, plus the self-employment-tax marginal (15.3% × 92.35%). This is the rate at which each deducted dollar reduces tax.
3. Tax saved. Total deductions × marginal saving rate.
Assumptions: all amounts entered are legitimately deductible business expenses, sole proprietor on Schedule C. Vehicle here uses the actual-expense method; don’t also claim standard mileage on the same miles.
Primary sources
- IRS Publication 535 / Publication 334, business expenses
- IRS Schedule C (Form 1040), Profit or Loss From Business
- IRS Publication 463, Travel, Gift, and Car Expenses (50% meals limit)
What a write-off is really worth
There's a myth that a business write-off means the expense is "free." It isn't. A deduction lowers your taxable income, so it saves you tax at your marginal rate — not the full amount you spent. Buy $1,000 of software and you don't save $1,000; you save whatever tax that $1,000 would have been charged. Think of a write-off as a discount, where the government covers your marginal-rate percentage of the cost.
The good news for freelancers: that percentage is bigger than most employees realize. Because a sole proprietor's profit is hit by both income tax and the 15.3% self-employment tax, a deductible dollar reduces both. This calculator values your deductions at that combined marginal rate — your income-tax bracket plus the SE-tax marginal (15.3% × 92.35%) — which is why the tax-saved figure often lands higher than people expect.
The categories, and the meals catch
Enter what you've spent across the common Schedule C categories: home office, supplies and equipment, software and subscriptions, travel, business meals, vehicle costs, and anything else that's ordinary and necessary for your work. One rule is baked in: business meals count at 50%. Enter the full amount you spent and the tool deducts half automatically, matching IRS treatment.
A quick note on vehicles. The vehicle line here is for the actual-expense method — your real car costs times business-use percentage. You can't also claim the standard mileage rate on the same miles. If you drive a lot for work, run the Mileage Deduction calculator and use whichever method gives the bigger deduction.
How to use the result
- Total deductions is the amount that comes off your taxable profit.
- Tax saved is the real cash benefit — deductions times your combined marginal rate.
- Your marginal rate shows how hard each deducted dollar is working for you. At higher income it climbs, making deductions more valuable.
Use these figures to decide whether an expense is worth it. A $500 tool that saves you $150 in tax still costs you $350 — deductions soften purchases, they don't pay for them.
Keep clean records
Every deduction needs to be a legitimate business expense with documentation to back it up. Keep receipts, log business purpose, and separate business from personal spending (a dedicated account or card makes this painless). Mixed-use items — a phone, a car, part of your home — are deductible only for the business-use share.
What this assumes
A sole proprietor on Schedule C, with all amounts entered being genuinely deductible. The estimate uses your net profit to find the right bracket; it doesn't model other household income or state tax.
Estimates only, not tax advice. Confirm which expenses qualify — and in what amounts — with a qualified professional.
Common questions
How much is a business write-off actually worth? + −
A deduction reduces your taxable income, so it saves you tax at your marginal rate — not the full amount you spent. For a freelancer that rate includes both income tax and the 15.3% self-employment tax, which is why write-offs are worth more to the self-employed than to employees.
Why are business meals only 50% deductible? + −
The IRS generally limits business meal deductions to 50% of the cost. This tool applies that automatically — enter the full amount you spent and it counts half toward your deduction.
What counts as a deductible business expense? + −
Costs that are ordinary and necessary for your work: software, supplies, a home office, business travel, professional services, and more. Personal expenses don’t qualify, and mixed-use items (like a phone) are deductible only for the business-use share.
Should I use actual vehicle expenses or the mileage rate? + −
You can deduct either your actual vehicle costs or the standard mileage rate — not both for the same miles. This tool’s vehicle line is for the actual-expense method; use the Mileage Deduction calculator to compare.
Keep going
Prepared for tax year 2026. Every rate and cap on this page cites a primary IRS or SSA source. Estimates only — not tax or financial advice. — for planning purposes only, not tax, legal, or financial advice.