Here’s what HIVE AI had to say about “What are deductions available to self-employed taxpayers this season?”:
Key deductions commonly available to self-employed taxpayers (2025 returns filed in 2026)
1) Business expense deductions (Schedule C / Schedule F)
- You generally deduct ordinary and necessary expenses of carrying on your trade or business against your self-employment income (for example, supplies, advertising, professional fees, contract labor, business insurance, etc.).
2) Business use of home (home office) (Schedule C)
- If you use part of your home regularly and exclusively for business (with special rules for daycare providers), you may deduct allowable home office expenses using either actual expenses or the simplified method.
3) Self-employed health insurance (Schedule 1 adjustment to income)
- If you qualify, you may be able to deduct health insurance premiums for yourself, your spouse, dependents, and children under age 27 as an adjustment to income, subject to limits (including the earned-income limit and the “no subsidized employer plan eligibility” rule).
4) Deduction for one-half of self-employment (SE) tax (Schedule 1 adjustment to income)
- You can deduct 50% of the SE tax (with some statutory exclusions) as an adjustment to income.
5) Retirement plan contributions for the self-employed (Schedule 1 adjustment to income; plus business deductions for employees)
- Contributions for common-law employees are generally deducted on the business return (Schedule C, partnership return, corporate return, etc.).
- Sole proprietors and partners generally deduct contributions for themselves on Schedule 1 (Form 1040).
6) Travel and meals (Schedule C)
- Travel expenses can be deductible if they’re business-related and substantiated; meal deductions are generally subject to percentage limits under §274(n). A revenue procedure explains a method that self-employed individuals may use to compute deductible meal amounts for travel away from home (still subject to the §274(n) limitation).
7) Qualified business income (QBI) deduction (Section 199A) (Form 8995 / 8995-A)
- Many self-employed taxpayers can claim up to a 20% QBI deduction, and the IRS notes it’s available for tax years beginning after December 31, 2017, and ending on or before December 31, 2025 (so it’s generally relevant on a 2025 return).
- The 2025 Form 1040 instructions direct taxpayers to compute it using Form 8995 or 8995-A, depending on taxable income and other factors.
8) Other deductions that may apply depending on facts
- HSA contributions (if you’re an eligible individual) are limited for self-employed individuals by earned income from the business the HDHP is established under.
- If you’re working through estimated taxes/withholding equivalents, Treasury regulations list categories of deductions that can be taken into account (including above-the-line deductions under §62, net losses from schedules, and the §199A deduction).
If you tell me how you’re self-employed (sole prop/1099, partnership K-1, S corporation) and your biggest expense categories (vehicle, home office, insurance, retirement), I can narrow this to the specific deductions that typically apply to that setup.
Sources
1 – IRS – Publication 587 Business Use of Your Home (Including Use by Daycare Providers)
2 – IRC § 162(l)
3 – IRS – Publication 502 Medical and Dental Expenses
4 – IRC § 164(f)
5 – IRS – Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers
6 – IRS – Publication 560 Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
7 – Rev. Proc. 2006-41
8 – IRC § 220(b)
9 – Treasury Regulation 31.3402(m)-1
10 – EITC due diligence and self-employed taxpayers
11 – Qualified business income deduction
12 – 1040 (2025)
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