If you’re a freelancer, creator, real estate pro, or self-employed rebel of any kind, December 31st isn’t just New Year’s Eve – it’s your financial finish line. Before the ball drops, Uncle Sam wants to know: did you make the most of your deductions, or are you about to tip your hat and hand him extra cash?

Don’t panic. Here are five smart, sometimes sneaky (but always legal) tax moves every 1099 worker should make before the year ends.

1. Mileage – The Obvious One You’re Probably Still Half-Doing

Yes, you can deduct mileage. But it’s not just the drive to a client meeting.

If you use your car for business, the IRS lets you write off 70¢ per mile (2025 rate) and that includes:

• Trips to the post office to mail products or documents
• Supply runs (yep, that Home Depot run counts)
• Travel to industry events or networking meetups
• Driving to meet a client (but not your regular commute — sorry, no dice there)

Pro tip: Use a tracking app that logs mileage automatically, because the IRS won’t take “I swear I drove a lot” as evidence.

But here’s what most people don’t realize: mileage deductions go beyond business use. Depending on what you’re driving for, you can also claim:

• Medical travel: 21¢ per mile (think doctor appointments, pharmacy runs, or therapy visits)
• Moving expenses: 21¢ per mile (for qualified active-duty military members only)
• Charitable mileage: 14¢ per mile when driving for a qualified nonprofit or community organization

Basically, your car might be doing more tax-deductible good than you think – so keep those logs tidy.

2. The Secret Write-Off: Prepay Expenses for Next Year

Here’s one the pros use: if you’re on a cash-basis accounting system (most 1099 workers are), you can prepay certain 2026 expenses before December 31st and claim them on this year’s return.

That means you can:

• Renew software subscriptions early (think Canva, QuickBooks, Zoom, etc.)
• Pay next year’s insurance premiums in advance
• Stock up on supplies you know you’ll use soon

You’re literally shifting deductions forward in time – like a financial time traveler with a spreadsheet.

3. Max Out Your “Solo Retirement Loophole”

If you’re self-employed, you can create your own mini-401(k) called a Solo 401(k) or contribute to a SEP IRA – and both can seriously lower your taxable income.

For example:

• A Solo 401(k) lets you contribute both as the employee and the employer. That’s potentially up to $69,000 in 2025 if you max it out.
• A SEP IRA is simpler to set up and lets you stash away up to 25% of your net earnings, up to the same limit.

Even if you set it up right at the end of December, you can fund it after year-end and still count it for this tax year (depending on your setup). That’s what we call a TaxHakr Jedi move.

4. Turn Your Kitchen Table into an Office (Legally)

You’ve probably heard of the “home office deduction,” but here’s where people mess up – they think it’s just for folks with a separate room.

Not true. If you have a dedicated space used exclusively for business, even if it’s a corner of your dining room, you can qualify.

What counts:

• The square footage (and yes, you can measure just the corner)
• Your internet bill (partially deductible)
• A portion of utilities, insurance, and rent/mortgage interest

You can take the simplified deduction ($5 per square foot, up to 300 sq. ft.), or calculate the actual expenses if you want to get fancy. Either way, don’t leave that money on the table – or the corner of it.

5. Hire Your Family (and Keep It Legit)

Here’s a move that’s both strategic and family-friendly: if you have kids or a spouse who legitimately help with your business, you can hire them and deduct their wages.

Examples:

• Your teenager handles your TikTok videos or packaging orders? That’s real work.
• Your spouse manages your bookkeeping or customer emails? Payroll-worthy.

You’ll need to pay them a reasonable wage, issue W-2s, and document the work – but you’ll move money from your taxable business income to your family, often at a lower tax rate. It’s like a tax-optimized family business dinner.

Bonus: The One Everyone Forgets – Clean Your Books

Before the year closes, run through your expenses and categorize everything correctly. That random Amazon charge from July? Figure out if it was business or personal.

Use tools (like, say, TaxHakr) that sync your accounts and flag potential deductions in real time. Because nothing ruins April like realizing you missed hundreds in write-offs hiding under “Miscellaneous.”

The Bottom Line

The end of the year isn’t about stress – it’s about strategy. Every smart move you make before December 31st can keep more cash in your pocket come tax time.

So pour yourself some coffee, open your banking app, and channel your inner tax rebel. Because tax season doesn’t have to be scary – not when you know how to hack it.

Ready to see what you’ve been missing?
Try TaxHakr and let your Rebel Brain find deductions you didn’t even know existed.