If you’re a freelancer, creator, contractor, or any type of 1099 , the end of the year isn’t just about holiday chaos and client “quick asks.” It’s your tax finish line, and the moves you make before December 31st can save you serious money.

This checklist breaks down exactly what to review, track, and update so you don’t leave deductions sitting on the table. Think of it as your year-end cleanup, but for your wallet.

✅ 1. Reconcile Your Income (Yes, All of It)

Before the year closes, make sure every payment you earned is accounted for: Cash App, PayPal, Venmo, Stripe, checks, wire transfers, crumpled invoices in your glove compartment… all of it.

Why it matters:
Your 1099s will arrive in January, and they must match your own income records. If they’re off, you pay the price, literally.

✅ 2. Capture Every Deduction You’re Entitled To

If you spent money to earn money, it likely counts. 

• Equipment (tools, cameras, laptops, software, etc.)
• Supplies and materials
• Mileage
• Phone + internet portion
• Office expenses (home office or coworking)
• Continuing education (courses, books, workshops, even podcasts!)
• Marketing + advertising
• Professional services (legal, accounting, design)

Pro tip:
Even small expenses add up. Don’t ignore that $12 charge for sandpaper, Canva, or random Home Depot run.

✅ 3. Make Year-End Purchases Strategically

If you know you’ll need a business expense early next year; software, tools, camera equipment, gear, buying it before December 31st means you can claim the deduction this year.

Section 179 & bonus depreciation can also make large purchases (like equipment or business vehicles) far more tax-friendly.

✅ 4. Max Out Your Retirement Contributions

Solo 401(k)? SEP IRA? Traditional IRA?

If you’re trying to reduce taxable income, retirement contributions are the most powerful legal cheat code freelancers have.

Examples:

• SEP IRA: Up to 25% of net earnings
• Solo 401(k): Employee + employer contributions
• Traditional IRA: Tax-deductible if you qualify

A contribution today could mean thousands saved in April.

✅ 5. Calculate Your Quarterly Taxes (and Fix Any Gaps)

Quarterlies are due in April, June, September, and January, but year-end is the best moment to:

• Check what you’ve paid
• Compare that to what you should have paid
• Make a catch-up payment if needed

Why bother?
Underpayment penalties are real, annoying, and completely avoidable.

✅ 6. Update Your Mileage Log Before You Forget Everything

If you didn’t track mileage perfectly, now’s the time to reconstruct:

• Client trips
• Supply runs
• Post office drops
• Networking events
• Industry meetups

The IRS mileage rate for 2025 is 70¢ per mile, which adds up ridiculously fast.

Learn more about mileage write-offs here. 

✅ 7. Organize Receipts & Documentation Like a Responsible Adult

Digital or physical, just keep them. The IRS doesn’t need your shoebox, but you do need proof if you’re ever questioned.

Good rule:
If you deducted it, document it.

✅ 8. Review Your Business Structure & Tax Strategy for Next Year

As your income grows, the way you’re taxed should evolve too.

Ask yourself:

• Should I be an LLC?
• Should I elect S-Corp status?
• Is my bookkeeping system actually working?
• Are my deductions optimized?
• Do I need better tools, automations, or support?

Even small changes can create big tax savings.

👉 What Happens If You Ignore All This?

Nothing at first. But then April hits. Don’t get caught off guard.