WWith the pandemic drastically changing the way business is done, the number of people in the United States has increased United States of America They are leaving the traditional workforce in order to become self-employed.
Freelance and independent contractor titles are starting to become more prevalent as individuals strive to maximize their work-life balance.
However, as in the case of business ownership or working professionals, those who are self-employed have to pay taxes to tax authority.
Regardless of whether you are working at a profit or a loss, it is important to use every discount you are entitled to.
Eight Tax Deductions Self-Employed Can Use
Here is a list of eight tax deductions that freelancers or other self-employed people can take advantage of.
- Training and education deductions: Any work-related educational expenses are eligible for a deduction on your tax return. This can be in the form of a class, webinar, or in person.
- Travel discounts: Whether it’s the cost of fuel for your car or a plane ticket, if you can prove that you’re traveling for business purposes, then those expenses can be deducted.
- Ministry of Interior discount: If you work from home, you can claim a range of expenses as deductions including rent, insurance, and utilities.
- Deductions by phone: Your business phone bills, whether it’s for a call or for the cost of a data plan, are deducted.
- Health Insurance Deductions: While health insurance plans can be pricey for those who are self-employed, there are provisions that apply to write off these expenses as a tax deduction.
- Retirement savings deductions: Contributions to qualified retirement plans, such as a 401(k) plan or SEP IRA. A, can be eligible for a discount.
- Advertising discount: It is allowed to deduct from advertising expenses such as billboards, online marketing, etc.
- Rental discount: The rent you pay for property you don’t own can be deducted as a business expense, especially if you work from home.
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