Let’s face it—taxes probably aren’t your favorite part of running a creative business. Whether you’re a designer, writer, photographer, or artist, you’d much rather be working on your next project than sifting through receipts and tax forms.
But here’s the good news: taxes don’t have to be just another headache. When you know what deductions to look for, they can actually help you keep more of your hard-earned money in your pocket (or reinvest it back into your creative work).
Before tax season sneaks up on you, let’s dive into some tax deductions for creatives that can help you save—and maybe even turn taxes into a bit less of a chore.
Home Office Deduction
If your creative work happens at home, you could be leaving money on the table if you’re not taking advantage of the home office deduction. Whether you’re renting a cozy studio space or working out of your living room, the IRS lets you deduct a portion of your home expenses—think rent, mortgage interest, utilities, and even repairs—based on the amount of space dedicated to your business.
To qualify, you should meet the following criteria:
- Regular and exclusive use: The space you’re claiming must be used regularly and only for your business—no doubling as your personal TV room.
- Principal place of business: Your home office needs to be where most of your business activities take place, even if you sometimes work elsewhere.
You’ve got two ways to calculate this deduction:
- Simplified Method: This option allows you to deduct $5 per square foot of your office space, up to 300 square feet, giving you a max deduction of $1,500.
- Actual Expenses Method: This is where you track your real home expenses and deduct the portion that corresponds to your office space. It takes a bit more work but could result in a larger deduction.
Note: If you’re running your creative business as an S-corporation, there’s a good chance your CPA isn’t deducting your home office expenses—this is something many people miss. Want to make sure you’re not overpaying on your taxes? Check out our detailed blog post here to see what steps you need to take and start saving more today.
Marketing and Advertising Costs
This one’s right up your alley! Whether you’re investing in social media ads, Google ads, or putting money into website design, hosting, and maintenance—these costs are fully deductible. That means every dollar you spend promoting your business can be written off, from content creation to printed flyers or promotional materials.
The best part? There’s no cap on how much you can deduct. As long as the expenses are considered ordinary and necessary for your business, feel free to deduct the full amount. So, keep those marketing efforts going strong—it all works in your favor when tax time rolls around!
Equipment and Software
Investing in fast, reliable tech is a must—and the good news is, it’s also tax-deductible. Not only does upgrading your equipment help you work more efficiently, but it also qualifies for some great deductions. Double win!
Under Section 179, you can deduct the full cost of certain equipment in the year you buy it, rather than spreading it out over several years. For 2024, the maximum deduction limit is a generous $1,220,000.
And don’t forget about your software subscriptions! Whether it’s Adobe Creative Cloud, project management tools, or even those Zoom or Slack accounts you use to keep your creative business running, they’re all deductible too.
Education and Training
Upgrading your equipment or software is great, but getting the most out of those new tools often means investing in some training too—and, luckily, those costs are deductible!
Whether it’s you or your team, any expenses related to education and training that improve your skills and help you stay on top of your game are fully deductible. So, whether you’re taking an online course to master a new design tool or sending your team to a workshop, you can write those expenses off at tax time.
Travel and Meals
Whether you’re flying out to meet a client, attending a creative conference, or scouting locations for a project, all your travel-related expenses—flights, hotels, car rentals—are deductible as long as they’re business-related.
As for meals, while the 100% deduction has expired, you can still deduct 50% of the cost when they’re tied to business activities. So, whether it’s a coffee with a client or dinner after a long day of meetings, half of those meal costs can be written off.
Contractor Payments
If you’ve hired freelancers—whether it’s a photographer, copywriter, or web designer—those payments are tax-deductible. Just make sure you have them fill out a Form W-9 and don’t forget to issue a 1099-NEC if you paid them more than $600 during the year. This keeps everything above board with the IRS and helps you maximize your deductions.
You get the same deduction for international contractors. Except you do not need to issue them a 1099 at the end of the year. But do make sure that you have them fill out form W-8-BEN.
Health Insurance
As a self-employed business owner, you can deduct the full cost of your health insurance premiums—not just for yourself, but also for your spouse and dependents. This applies whether you buy your insurance independently or through a state marketplace.
And the good news? It covers premiums for dental and long-term care insurance, too. Just keep in mind, that if you’re eligible for health coverage through your spouse’s employer, you may not qualify for this deduction.
Internet and Phone Bills
Your phone and internet bills can be deducted, but only the portion you use for business.
For example, if you spend about 60% of your phone time talking to clients, managing projects, or coordinating campaigns, you can write off 60% of that phone bill. The same goes for your internet—if a good chunk of it is used to handle business tasks, you can deduct that percentage, too!
Office Supplies
From pens and notebooks to printers and paper, all the supplies that keep your business running are tax-deductible. Even that fancy ergonomic chair you bought to make your home office more comfortable is fair game!
Books and Reference Materials
If you’re buying business books (whether paperbacks or digital), subscribing to industry magazines, or paying for access to online resources to level up your skills, you can deduct those costs. 📚💻
And it’s not just limited to materials on creative or technical training—it includes anything that helps you run your business better, like books on leadership, finance, or marketing strategies.
Final Thoughts
Keeping track of your deductions can feel like a lot, but organizing those receipts—from client dinners to software subscriptions—will make tax time (and any potential audits) so much easier.
And if all this still feels overwhelming, don’t worry—we’re here to help. From bookkeeping to tax management, our team at Agency CPAs is here to keep your creative business running smoothly so you can focus on what you do best.
The best part? Investing in professional services like ours is also tax-deductible, so you’re saving money while getting expert support!
Reach out to us today and see how we can help! Simply use the calendar below to book your introductory call.
Until next time!
