What Arizona Freelancers Should Track This Summer to Maximize Tax Deductions

Freelancing in Arizona offers flexibility, independence and the chance to build your dream career, but it also comes with the responsibility of managing your own taxes. Unlike traditional employees, freelancers don’t have taxes withheld from each paycheck. That means it’s up to you to track expenses year-round and make quarterly estimated payments if you want to stay compliant and take full advantage of available deductions.

Summer can be an especially busy season, whether you’re traveling for gigs, networking at local events or just catching up on admin work at home. That’s why it’s the perfect time to tighten up your recordkeeping and make sure every eligible deduction is documented.

1. Track Business Mileage

If you’re using your personal vehicle for freelance-related activities, client meetings, supply runs and reaching project locations, you could be eligible to deduct the mileage. For 2025, the IRS standard mileage rate is 70 cents per mile, but this rate can change annually. Keeping precise records now ensures you won’t lose track of any distance traveled.

What to do:

• Use an app like MileIQ or Everlance, or keep a manual log.
• Record the date, purpose, starting point and total miles driven for each trip.
• Note whether the trip was entirely business-related or mixed with personal errands.

2. Save Receipts for Meals and Entertainment

While personal meals aren’t deductible, business meals with clients or colleagues are, typically at 50%. If you discuss business, pitch a project or collaborate over lunch, you can likely write it off.

What to do:

• Keep receipts for meals and jot down who you met with and the business purpose.
• Use your accounting software or a spreadsheet to track these throughout the summer.
• Don’t forget coffee shop meetings, they count, too.

3. Log Home Office Use

Arizona freelancers who work from home may be eligible for a home office deduction. The space must be used regularly and exclusively for business, even if it’s just a corner of your living room.

What to do:

• Measure the square footage of your dedicated workspace.
• Keep records of rent, mortgage interest, utilities, internet costs and repairs.
• Use either the simplified method (standard per-square-foot rate) or actual expense method.

4. Track Equipment and Office Supplies

From laptops to printer ink, anything you purchase specifically for your freelance business may be deductible. That includes equipment, software, office furniture and general supplies.

What to do:

• Save receipts for all business-related purchases.
• Categorize them by type: technology, furniture, and general office supplies.
• For items over a certain value, you may need to depreciate them over several years.

5. Document Subscriptions and Software Costs

Do you use Adobe Creative Cloud, Zoom Pro, Microsoft 365, Canva or industry-specific tools? Subscriptions and cloud-based platforms that support your freelance work are valid deductions.

What to do:

• List all monthly or annual digital tools and subscriptions.
• Include any recurring payments tied to your business.
• Keep confirmation emails, invoices or bank statements for proof.

6. Keep Track of Marketing and Web Expenses

Your website hosting, domain name, ads and even printed business cards can all count as deductions if they help promote your freelance work.

What to do:

• Save invoices for anything promoting your business.
• Track how much you spend on paid social media ads, boosted posts or Google Ads.
• Include expenses for hiring designers or marketing consultants.

7. Record Educational and Training Costs

If you take a summer workshop, enroll in an online course, or attend a business conference, those costs may be deductible as professional development.

What to do:

• Keep receipts for course fees, textbooks, or conference passes.
• Note the topic and how it relates to your freelance business.
• Include travel or lodging if directly connected to the event.

8. Monitor Utilities and Cell Phone Use

If you use your cell phone or internet service for business, you can deduct a portion of those bills. Just make sure you’re calculating the percentage that actually supports your freelance work.

What to do:

• Estimate the monthly percentage of business use for your phone or internet.
• Keep copies of bills as backup.
• If your personal phone is also your work line, consider setting clear usage boundaries.

9. Track Payments to Contractors

If you hire a virtual assistant, editor, or any subcontractors this summer, you’ll need to issue a 1099-NEC to anyone you pay over $600 during the year.

What to do:

• Collect W-9 forms upfront.
• Track total payments made to each contractor.
• Keep a record of the type of services provided.

Stay Ahead of Summer Business Spending With Our Freelancer Tax Services in Phoenix, AZ

It’s tempting to loosen up during the slower summer months, but smart recordkeeping now means fewer headaches when tax season rolls around. A little organization today can translate into hundreds or even thousands in tax savings later.

Need support with bookkeeping, freelance tax preparation or deductions? Contact H&H Accounting Services today for a personalized consultation by calling (480) 561-5805.