With the pandemic drastically altering the way in which business is carried out, more people in the USA are starting to leave the traditional work force in order to become self-employed.
The titles freelancer and independent contractor are starting to become more mainstream as individuals seek to maximize their work-life balance.
However, as in the case of business ownership or working professionals, those who are self-employed are required to pay taxes to the IRS.
Irrespective of whether you operate at a profit or a loss, it is important to use every deduction you’re entitled to.
Eight tax deductions that self-employed people can use
The following is a list of eight tax deductions that freelancers or other self-employed workers can take advantage of.
- Training and Education Deductions: Any work-related educational expenses are eligible for deductions on your tax return. This could be in the form of a class or seminar online or in person.
- Travel Deductions: Whether it’s the cost of gas for your car or a plane ticket, if you can prove you were traveling for business purposes, then that expense can be deducted.
- Home Office Deduction: If you work from home, you can claim a host of expenses as deductions including rent, insurance and utilities.
- Phone Deductions: Your business phone bills are deductible, whether it’s for calling or for the cost of a data plan.
- Health Insurance Deductions: While health insurance plans can…
