Self-employed individuals can claim a variety of deductions on their taxes, including:
It's important to keep detailed records of all expenses related to your business in order to accurately claim deductions on your taxes.
Yes, self-employed individuals can deduct vehicle expenses related to their business, but only for the portion of the vehicle's use that is for business purposes. This can be calculated using either the standard mileage rate or actual expenses, such as gas, maintenance, and repairs. It's important to keep detailed records of all vehicle expenses and the purpose of each trip in order to accurately claim this deduction.
Yes, self-employed individuals can deduct their home office expenses if they use a portion of their home exclusively for business purposes. This can include expenses such as rent, utilities, and repairs. The deduction can be calculated using either the simplified method, which allows for a deduction of $5 per square foot of the home office space, or the regular method, which requires calculating the actual expenses related to the home office. It's important to keep detailed records of all home office expenses in order to accurately claim this deduction.
Yes, self-employed individuals can deduct their health insurance premiums as a business expense. This deduction is taken on the front page of the individual's tax return and is not subject to the 7.5% adjusted gross income threshold that applies to medical expenses for individuals who are not self-employed.