22 Tax Write-Offs for Freelance Medical Billers & Coders

NAICS business code541219
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As a medical billing expert, you know that people don’t want to pay more than they have to. But what about when it comes to your own bills? Did you know you can save significantly off your taxes just by claiming the business purchases you need to make to do your job?

Just like medical practices itemize their expenses, you can itemize the type of expenses you face every day. And with our guide to the best write-offs for medical billers and coders, you won’t even need to call a billing department to get your savings!

Courses & certifications

Educational courses and certifications to enhance your skills are considered tax write-offs.

This covers training that maintains or improves skills for the work you already do. Courses that qualify you for a new trade or profession are not deductible.

Where to write it off: Schedule C, Box 27b
Office supplies

Deduct anything you buy for your office, like pens, binders, folders, printer ink, or a whiteboard.

Where to write it off: Schedule C, Box 18
Reference books

Reference books you use for research or to hone your industry knowledge are write-offs.

Where to write it off: Schedule C, Box 27b
Postage fees & supplies

Envelopes, stamps, and other postage fees supplies (plus fees!) for your business are deductible.

Where to write it off: Schedule C, Box 18
Productivity software

Software you use for invoicing, tracking expenses, creating timesheets, and so on is deductible.

Where to write it off: Schedule C, Box 18
Phone, laptop, accessories

If you buy a phone or laptop and use it for work, it's partially deductible β€” in proportion to how much you use it for business. The device itself is depreciated on Box 13 (or expensed under Section 179); your monthly service plan belongs on Box 27b, and accessories on Box 22.

Where to write it off: Schedule C, Box 13
E&O insurance

Errors and omissions coverage protects you when a client claims your advice or work caused them a loss β€” the premiums are deductible.

Where to write it off: Schedule C, Box 15
Legal fees

Legal fees paid to set up your business or draw up paperwork are deductible.

Where to write it off: Schedule C, Box 17

If you drive for work ...

As a medical billing specialist, you may need to drive to meet clients, drop off official letters at the post office, or pick up office supplies. Luckily, a portion of your car expenses, such as gas or insurance, can be claimed on your taxes!

Parking

Parking for a meeting downtown, or any other work trip, is tax-deductible!

Where to write it off: Schedule C, Box 9
Tolls

A toll while driving to or from a work destination is tax-deductible!

Where to write it off: Schedule C, Box 9
Car purchase & depreciation

If you buy a new car, you can write off part of the cost every year for five years.

Where to write it off: Schedule C, Box 13
Vehicle tool kit

Flashlights, tire iron, duct tape, and other tools you may need in your vehicle are deductible.

Where to write it off: Schedule C, Box 22
Car insurance & registration

Car insurance monthly fees, registration, even roadside assistance are partially deductible β€” if you use the actual expense method. The standard mileage rate already covers them.

Where to write it off: Schedule C, Box 9
Car maintenance

Oil changes, repairs, and regular checkups are deductible if you use the actual expense method. Take the standard mileage rate instead and they're already baked into your per-mile deduction.

Where to write it off: Schedule C, Box 9

If you discuss work at a restaurant ...

Grabbing lunch to chat about medical billing techniques with fellow medical coders, insurance agents, or healthcare providers is a business expense you can write off. This includes both food and drinks!

Business meals

If you discuss work with a coworker, mentor, client, or prospective client, it's a write-off β€” 50% of the tab.

Where to write it off: Schedule C, Box 24b

If you leave town for work ...

Travel expenses, like flying to an out-of-state industry conference or staying in a hotel for a networking event in another city, can all be written off on your Schedule C.

Transportation

Planes, trains, and car rentals are all work-related travel costs that can be written off.

Where to write it off: Schedule C, Box 24a
Travel lodging

When you travel for work, lodging expenses such as hotel rooms or Airbnb are write-offs.

Where to write it off: Schedule C, Box 24a
Meals while traveling

When you're traveling for work, your meals are 50% deductible β€” takeout included. (Long-haul truck drivers subject to DOT hours-of-service rules can deduct 80%.)

Where to write it off: Schedule C, Box 24b

If you work from home ...

If you regularly work from home, you can deduct home office-related expenses. That includes attending virtual meetings or organizing client paperwork from a designated office space.

Home office furniture

A desk, chairs, lamps, and other home office necessities are all tax write-offs. Anything over about $2,500 gets depreciated on Form 4562 instead of written off all at once.

Where to write it off: Schedule C, Box 18
Property repairs

Repairs just for your home office are 100% deductible. Repairs to the rest of your home count too, prorated by your business-use percentage on Form 8829.

Where to write it off: Schedule C, Box 21
Power bill

Gotta keep the lights on in your home office! A portion of your electricity bill counts.

Where to write it off: Form 8829
Property insurance

Whether it's rental or homeowners insurance, you can write off a portion through your home office deduction.

Where to write it off: Form 8829
Water bill

It'd be hard to work in an office without running water, huh? Your water bill counts.

Where to write it off: Form 8829
Wi-Fi bill

You need internet to do your job! If you claim a home office, deduct it prorated on Form 8829 along with your other utilities. Internet you pay for on the road, purely for work, is 100% deductible.

Where to write it off: Schedule C, Box 25

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