4 Tax Deductions For Individuals That Are Self-Employed

Many people want to be the boss when it comes to making a living. However, one of the best ways to accomplish this task may rest in being self-employed. The good news is there are some advantages if you can achieve this goal in life. One of the largest for most people may involve setting your schedule. Another benefit is the number of tax deductions you can achieve when your self-employed and knowing what some of these are can be helpful to you.

Deduction #1: Home office

You may have a space in your living area that is specifically used to run your business. Having a home office can help you be more productive and enjoy your work at the same time.

Be sure to let your accountant know the square footage of your home office because this will determine how large your tax deduction will be. This is a deduction you will want to be sure to take to assist in lowering your taxable income.

Deduction #2: Self-employment taxes

Of course, having to pay the full amount of your employment taxes isn't fun for most entrepreneurs. This can add up fast and may even discourage some people from owning a business.

However, the government does allow you to deduct half of this amount from your income, and this can mean lower taxes for you to pay.

Deduction #3: Health insurance

Staying insured continues to get more and more costly. Not having an employer assist in paying part of these costs for you can be discouraging.

One of the things that can help in this situation is knowing you can deduct the full cost of your health insurance from your gross wages. This is a major advantage for any individual that is self-employed to have!

Deduction #4: Office expenses

If you work online to make your living and rely on your phone to communicate with customers or clients, this can be helpful to you when it comes to taxes. You'll be able to deduct the cost of your Internet and phone for your business, and this can add up to lower taxes for you!

Knowing the ways you can reduce your taxes is ideal for any individual that is self-employed. Doing the right amount of research and talking to your accountant about these can be extremely helpful to you in this situation. Be sure to schedule time to talk to a financial professional, such as Jeffrey Beebe CPA, today for lower taxes tomorrow!

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Hi there, my name is Fanny Castile. Welcome to my website about acquiring and repaying loans. When I was looking for a new car, I was stunned to see how much the vehicles were going for in the style I wanted. I needed a vehicle that would help me transport my business gear and take my dogs on fun excursions on my off days. To acquire the vehicle I needed, I took out a loan. Throughout the loan acquisition and repayment process, I learned a ton of information about this subject. On this site, I will share my knowledge with you all to help everyone approach the loan process with ease. Thanks.




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