✂️ Calculate Your Deduction Savings
Runs entirely in your browser — no income data is sent or stored. Uses official 2026 figures: IRS Rev. Proc. 2025-32 brackets, $16,100/$32,200 standard deduction, 15.3% SE tax on 92.35% of net profit, $184,500 Social Security wage base, and full progressive state brackets for all 41 taxing states + DC.
Why deductions are worth more to freelancers than employees
A business deduction reduces your net profit — and net profit is the base for BOTH self-employment tax (15.3%) and income tax. So a freelancer in the 22% federal bracket typically saves 30–40 cents per dollar deducted once SE tax and state tax are counted, where an employee's itemized deduction (if they can use one at all) saves only the income-tax portion. The calculator above shows your exact per-dollar savings.
The rules that keep you safe
The IRS standard is that expenses must be "ordinary and necessary" for your business (IRC §162). The home office must be a space used regularly and exclusively for work — the kitchen table doesn't qualify, a dedicated desk area can. Mileage requires a log (date, miles, purpose); the 2026 standard rate is $0.70/mile. Business meals are 50% deductible. Mixed-use items like phone and internet are deductible only for the business-use percentage. When in doubt, keep the receipt and ask a CPA at filing time — the deduction is usually worth the question.
Deductions this tool doesn't model
Three big ones sit outside Schedule C and are excluded here (so your real bill may be even lower): the QBI deduction (up to 20% of qualified business income), self-employed health insurance premiums (100% deductible against income tax), and retirement contributions (Solo 401(k) employee + employer contributions can shelter $70,000+ in 2026). If you're profitable, these three are usually the largest levers you have — ask a CPA about ordering them correctly.
FAQ
How much does a $1,000 deduction actually save me?
Typically $300–$400 for a mid-income freelancer in 2026: about $141 in SE tax (14.13% effective) plus your marginal federal rate (12–24%) plus your state rate. Enter your numbers above for the exact figure.
Can I deduct expenses without receipts?
You must be able to substantiate deductions. Keep receipts, bank statements, and a mileage log. Digital copies are fine. No documentation means the deduction can be disallowed in an audit.
Is the home office deduction an audit red flag?
Not when legitimate. The simplified method ($5 per square foot, up to 300 sq ft = $1,500 max) is easy to defend if the space is used regularly and exclusively for business.
Do deductions reduce my quarterly estimated payments too?
Yes — deductions lower net profit, which lowers the annual tax your quarterly payments are based on. Re-run the quarterly calculator after estimating your expenses.
Want the full state-by-state breakdown?
The main 1099 tax calculator shows your complete SE + federal + state breakdown, or jump to the quarterly payment calculator or take-home pay calculator.
Estimates only — not tax advice. QBI deduction, credits, and retirement deductions are not included, so your real bill may be lower. Sources: IRS Rev. Proc. 2025-32, SSA, Tax Foundation 2026, state DORs. Last updated July 2, 2026. Report an issue.