List and total freelance tax deductions.
A deduction is not a refund — it reduces taxable profit, so its cash value is the deduction multiplied by your marginal rate. At a 32 percent combined rate, 8,800 of expenses is worth about 2,800, not 8,800. Deductions are capped at income here because they cannot create a negative profit in most simple cases, and the deduction rate is shown because an unusually high ratio of expenses to income is a common trigger for enquiry and worth being able to justify.
Deductions
Deductions = home office + equipment + travel + other allowable costs, capped at gross income
Cash value
Tax saved = deductions x marginal tax and contribution rate
This is a general estimate, not tax advice. Which expenses are deductible, how they must be apportioned, and the rates and thresholds that apply all depend on your jurisdiction, your business structure and your individual circumstances, and they change between tax years. Keep records and confirm your position with a qualified accountant or your national tax authority before filing.
Because deductions come off the top of your profit, so they save tax at the highest rate you pay. Using your average rate understates the benefit, sometimes substantially.
It depends on the regime — some allow immediate expensing up to a limit, others require capital allowances or depreciation over several years. Enter only what is deductible in the current year.
Generally the business-use proportion, calculated by rooms or floor area and by time used, or a flat rate where one is offered. Claiming a whole room used partly for personal purposes is the most commonly challenged deduction.