Understanding the available 2025 self-employed tax credits can help you reduce your tax bill and increase your refund. Tax credits are one of the most effective tools available to freelancers, gig workers, and small business owners to offset business costs. From work-related expenses to retirement savings and energy-efficient investments, there are a variety of credits available this year to help you save.
At SETC Tax Return, we specialize in helping self-employed individuals maximize their tax savings. Our platform makes it simple to identify and claim the tax credits you deserve, no matter your level of tax knowledge.
What Are 2025 Self-Employed Tax Credits I Can Claim?
Tax credits directly reduce the amount of taxes you owe, helping you keep more of your hard-earned income. For anyone who files as a 1099 contractor, these credits target a wide range of expenses and circumstances, including income level, health insurance, and retirement savings. Some of the most significant credits available in 2025 include:
Earned Income Tax Credit (EITC)
Designed for low- to moderate-income earners, the Earned Income Tax Credit can reduce your tax liability significantly. The amount varies based on your income and the number of dependents you claim.
Retirement Savings Contributions Credit
Also known as the Saver’s Credit, this rewards individuals who contribute to a qualified retirement account like a Solo 401(k) or SEP IRA. You could receive up to 50% of your contributions as a tax credit.
Health Insurance Premium Tax Credit
If you purchase health insurance through the marketplace, you may qualify for this credit. It helps cover the cost of premiums for those whose income falls within a specific range.
Clean Energy Tax Credits
If you’ve invested in renewable energy for your home or business—such as solar panels, energy-efficient windows, or insulation—you may be eligible for a credit to offset a portion of the installation costs.
Additional Deductions for 2025
In addition to tax credits, you can take advantage of several deductions that reduce taxable income. These deductions help freelancers, gig workers, and small business owners manage the financial burden of operating independently. Key deductions to consider in 2025 include:
- Home Office Deduction: If you work from home, you can deduct expenses related to the portion of your home used exclusively for business. This may include rent, utilities, and maintenance.
- Vehicle and Mileage Expenses: If you use your vehicle for business purposes, you can deduct expenses such as fuel, maintenance, and insurance. Alternatively, you can take the standard mileage deduction, which provides a set rate per mile driven.
- Health Insurance Premiums: You can deduct the full cost of their health insurance premiums, including those for their family.
- Startup Costs: If you start a new business, you can deduct up to $5,000 in qualifying startup expenses, such as legal fees, market research, and advertising.
- Continuing Education: Costs associated with training, certifications, or courses that improve your skills in your field are deductible.
- Office Supplies and Equipment: Items like computers, printers, software, and office furniture used for your business can also be deducted.
- Internet and Phone Services: If you use your phone or internet connection for business purposes, you can deduct a portion of these expenses.
- Self-Employment Tax: While self-employed individuals pay both the employer and employee portion of Social Security and Medicare taxes, you can deduct the employer portion from your taxable income.
How Freelancers, Gig Workers, and Small Business Owners Can Maximize Tax Credits and Deductions
Freelancers
If you work from home, you can benefit from the home office deduction, as well as credits for retirement savings and health insurance. Keep detailed records of expenses like internet, software, and equipment to ensure you claim all eligible deductions.
Gig Workers
Gig workers can deduct vehicle expenses, mileage, and even tolls if their work requires driving. If you purchase supplies or equipment for gigs, such as tools for delivery or photography gear, those expenses can also be deducted.
Small Business Owners
Small business owners may qualify for the Work Opportunity Tax Credit if they hire employees from target groups, like veterans or individuals receiving government assistance. Additionally, businesses investing in energy-efficient upgrades or conducting research may qualify for further credits.
How SETC Tax Return Can Help
At SETC Tax Return, we simplify the process of claiming your tax credits and deductions, so you can focus on your business. We provide the tools and support you need to maximize your tax savings.
- Automated Tools: Our platform makes identifying and claiming tax credits straightforward and stress-free.
- Expert Guidance: We help you navigate the complexities of self-employment taxes to ensure you file correctly and claim every credit you deserve.
- Maximized Refunds: From 2025 tax credits to retirement savings and clean energy incentives, we make sure no opportunity is overlooked.
In addition to helping with 2025 tax credits, you can still file for or amend your 2021 IRS refund to claim the SETC refund if COVID-19 affected your ability to work in 2021. The deadline to amend your return is April 15, 2025, so don’t wait to take advantage of this opportunity.
We can guide you through the amendment process and ensure your refund is accurate and maximized.
Take Control of Your 2025 Tax Credits
The 2025 self-employed tax credits offer valuable opportunities to reduce your tax bill and increase your refund. By understanding the credits available, keeping accurate records, and using the tools SETC Tax Return has available, you can file confidently and save money.
Don’t leave money on the table. To get started, click here or give our team a call at 888-738-2829.