Updated for tax year 2025.
Freelance tutoring can be a great way to earn some extra cash. Sometimes, it may even turn into a full-time income source. But since being a freelancer means you are an independent contractor and not an employee of a company, it comes with its own tax implications. As a freelance tutor, the Internal Revenue Service considers you to be a small business owner, and you must pay your taxes accordingly. To help you out, here are some freelancer tax tips to prepare you for filing taxes this year.
At a glance:
Freelance tutors are considered self-employed and typically file Schedule C.
You can deduct ordinary and necessary business expenses to lower your taxable income.
New for 2025: Eligible tutors who receive tips may qualify for a new federal deduction for qualified tip income.
Keeping detailed records of income and expenses helps you avoid penalties and maximize deductions.
Freelancers are responsible for paying estimated quarterly taxes.
How to file taxes as a freelancer
Filing taxes as a freelancer takes a little more organization than filing as an employee, but it’s very manageable with the right system in place.
As a self-employed tutor, you’ll report your business income and expenses on Schedule C (Profit or Loss From Business), which is filed with your personal income tax return. Your net profit is subject to both income tax and self-employment tax (which covers Social Security and Medicare).
By keeping track of your business-related expenses and claiming all eligible freelancer tax deductions this tax season, you can lower your net business income (a.k.a. taxable income), reduce your tax liability, and put more money back into your pocket.
Tax deductions for freelance tutors
Freelance tutors are eligible for a few special work-related deductions and tax benefits. Tutors are essentially running mini classrooms and often have many unique expenses that come along with that. Fortunately, you can claim deductions for many of your private tutoring expenses. Let’s review some of the top tax write-offs currently available to freelance tutors.
1. Office and school supplies
If you purchase materials to help your students succeed, those costs are generally tax-deductible.
This can include:
Paper, notebooks, pens, markers
Printer ink and toner
Educational books and workbooks
Teaching aids and manipulatives
Online teaching tools and software subscriptions
Virtual classroom platforms
Larger purchases like laptops, tablets, webcams, microphones, and advertising expenses are also deductible if they’re solely used for your tutoring business.
2. Your home office
If you run your tutoring business from a home office, you may be eligible to claim the home office deduction. You can also deduct the cost of a coworking office space if you work there instead of at home.
Along with your home office, you can deduct a portion of your phone bill and internet expenses, if applicable. Even if you use your internet and phone for personal use, you can deduct part of the cost as a business expense (proportionate to your business use).
Another deduction related to your home office expenses you may overlook is office furniture. For instance, purchasing a chair or desk for your students is considered a necessary business expense and is generally tax-deductible.
3. Union dues
If you’re a self-employed tutor who belongs to a freelancer’s union, you are more than likely required to pay union dues. Those dues help cover the cost of education, events, and other activities provided to the union’s members. Since union dues are required for membership, the membership cost is considered a deductible expense because it’s necessary for the growth of your business.
You can deduct costs like:
Union dues
Initiation fees
Professional association memberships
Industry organization fees
All of these can be reported on Schedule C as a business expense when filing your tax return.
4. Travel expenses
As a tutor, you can deduct transportation expenses if you travel for business purposes. For example, if you met a client at a school or a library for your tutoring session, you could deduct the mileage to and from that appointment. You can also deduct costs for traveling to in-person professional development seminars (see next section).
To maintain an accurate record of your travel expenses and business trips, keep a running mileage log in your car or use a mobile app that calculates the miles as you drive.
For 2025, you may use the IRS standard mileage rate or deduct actual vehicle expenses, if you qualify. TaxAct® can walk you through either method if you file with us.
5. Continuing education and seminars
If you invest in your tutoring business by improving your tutoring skills, those costs are often deductible.
This may include:
Online courses and webinars
Professional development seminars
Certification programs
Workshops
Teaching conferences
To be a deductible expense, the education must maintain or improve skills required in your current tutoring business. Expenses that qualify you for a completely new career generally aren’t deductible.
As always, keep all receipts to back up any business tax deductions you claim.
6. Licensing
Launching your tutoring business usually requires you to obtain some type of licensing. Fortunately, you can deduct licensing fees on your tax return.
Licensing deductions can include:
Annual renewal fees
Professional exam fees
Certification costs
Website domain registration
Business insurance premiums
7. Athletic and musical equipment
If you tutor music or sports, specialized equipment is often a necessary part of your services.
Examples include:
Musical instruments
Sheet music
Sports equipment
Training aids
Equipment repairs and maintenance
Depending on the cost, equipment may either be fully deducted in the year of purchase or depreciated over time. Don’t stress, though — TaxAct will guide you through the deduction process step by step.
8. Tutoring tips (New for tax year 2025)
Starting in tax year 2025, freelance tutors may qualify for a new federal qualified tip income deduction under the Working Families Tax Cuts Act (a.k.a. the One Big Beautiful Bill or OBBB).
Treasury guidance specifically includes tutors (occupation code 507) as eligible workers under this provision. If you receive voluntary gratuities from clients in addition to your regular tutoring fees, you may be able to deduct up to $25,000 in qualified tip income, subject to income limits and IRS rules.
If you earn tips as part of your tutoring services, make sure you maintain accurate records so you can take advantage of this new freelancer tip deduction when filing your 2025 return.
Read more about this deduction in our No Tax on Tips Guide.
More freelance tutor tax tips
As a freelance tutor, you are responsible for paying your self-employment tax and keeping track of business expenses. Being organized year-round makes tax season much easier. Here are some of our top tips.
Use a consistent invoicing system
Track all payments from clients. Even if a client doesn’t issue you a 1099 form, you’re still required to report the income. Don’t forget to keep a record of your total earnings and what each separate client paid you.
Set aside money for quarterly taxes
Freelance tutors generally must pay quarterly estimated taxes. If you don’t, you may face penalties and a large bill at filing time.
A common rule of thumb is setting aside 25–30% of income for taxes, though your exact tax rate may vary. If you don’t make quarterly payments, you could be left with a large tax bill when you file your tax return, along with potential penalties.
Track expenses as you go
As you spend money on your tutoring business, create a system for logging expenses we mentioned above, such as:
Supplies
Equipment
Software
Mileage
Professional fees
Make sure to save digital or paper copies of all receipts!
FAQs
The bottom line
Organizing your freelancer finances from the start will save time and ensure you don’t forget to claim any deductible expenses when filing your taxes. And when you file with TaxAct, our tax software can help you more easily understand your deductible expenses and help identify areas where you might be able to take advantage of certain tax breaks.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
