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Tax season can feel overwhelming, especially for self-employed workers. With multiple income streams, countless expenses, and changing IRS rules, it’s easy to leave money on the table. The good news? A few smart strategies can help you maximize your refund and reduce stress. Whether you’re a gig worker, freelancer, or small business owner, this guide has actionable tips to make 2025 your smoothest tax year yet.
Did you know that the IRS standard mileage rate for 2025 is 70 cents per mile? Those miles add up fast, and tracking them accurately can lead to significant savings. Whether you’re driving for DoorDash, showing houses as a realtor, or running errands for your business, a mileage tracking app like Everlance ensures no mile goes unrecorded.
Say you drive 10,000 business miles in a year. At 70 cents per mile, that’s a $7,000 deduction, directly reducing your taxable income. For someone in the 22% tax bracket, that’s over $1,500 in tax savings!
Pro Tip: Separate personal and business trips by using an automatic tracker, so you never miss out on potential deductions.
Beyond mileage, there are countless expenses you can deduct as a self-employed worker. The challenge is knowing what qualifies and ensuring you document everything.
Deduct a portion of your rent, utilities, or internet if you work from home. The space must be used exclusively for business. For example, a 200-square-foot office in a 1,000-square-foot apartment could qualify for 20% of certain household expenses.
Computers, software, and even office furniture can qualify.
Courses, certifications, and books related to your work are deductible.
Meals with clients or for business purposes can be deducted at 50% (or 100% if purchased from a restaurant).
Pro Tip: Use tools like Everlance’s Deduction Finder to scan expenses for overlooked deductions and maximize your savings.
Introduced as part of the Tax Cuts and Jobs Act, the QBI deduction allows eligible self-employed workers to deduct up to 20% of their qualified business income.
This deduction is available to:
Your income and profession determine eligibility. For 2025, phase-outs begin at $182,500 for single filers and $365,000 for married couples filing jointly.
Pro Tip: If your income exceeds these thresholds, working with a tax professional can help you explore strategies like maximizing retirement contributions to stay eligible.
The IRS requires self-employed individuals to pay estimated taxes quarterly. Missing these payments can lead to penalties and a hefty bill come April.
Estimate your total income, deductions, and tax owed for the year, then divide by four. Tools like Everlance’s income tracker can make this process seamless by providing a clear picture of your earnings.
Pro Tip: Set aside 25-30% of your income for taxes. If you’re unsure about your calculations, consult a tax professional to avoid underpayment penalties.
Self-employed individuals are more likely to be audited than W-2 employees. While it’s rare, audits can be stressful and time-consuming. Protect yourself by keeping detailed records of income and expenses and investing in audit protection.
Audit defense services provide professional support if you’re audited, ensuring you have representation and guidance through the process. Everlance Professional includes $1,000,000 in audit defense services, even if you don’t file taxes through the platform.
Pro Tip: Use an automatic tracker to ensure all your records are IRS-compliant. Apps like Everlance generate reports that meet IRS standards, giving you peace of mind.
Tax filing doesn’t have to be a juggling act. Integrated tools can streamline the process, ensuring every deduction is captured and your forms are filed on time.
Our new Professional plan is an all-in-one solution for self-employed workers, offering:
Pro Tip: Combining tracking, filing, and audit protection into one platform saves time and ensures nothing falls through the cracks.
Tax season doesn’t have to be a headache. With proper tracking, a strong understanding of deductions, and the right tools, you can save money and reduce stress. Everlance is here to help every step of the way—from mileage tracking to audit defense—so you can focus on growing your business.
Try Everlance Professional today and take control of your finances for just $99/year.
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Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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