13 Sep 5 Self-Employed Tax Deductions You Need to Take This Year
If there’s one downside to being self-employed: it’s the self-employment tax.
While it’s nice to be your own boss and make your own schedule and decisions, filling out a tax return is more of a chore than it is for most people. Self-employed individuals often don’t get money back. Instead, they’re paying a hefty sum to the IRS every year.
Paying self-employment tax is unavoidable. It’s a part of life.
But there are multiple ways to knock that bill down.
If you want to keep more money in your pocket, then keep reading for 5 self-employed tax deductions that you need to take this year. All of these deductions will be added to the Schedule-C form.
- Rent your office space from your spouse. If you use a room in your home for conducting business, that space is tax deductible. Just be sure to get the measurements of the office correct for the most accurate deduction.
- Claim your vehicle as your business vehicle. If you drive around for your business, then your vehicle can save you hundreds if not thousands on your tax bill! Click this link to learn more about vehicle deductions.
- Employ your child. If you have any children under 18 years old, then you can employ them in your business. Whatever you pay them is completely tax deductible and can save you quite a bit.
- Take health insurance deductions. With a Section 105 plan, you can take a business deduction for your health insurance. This method can be a bit complex, so be sure to do your research before trying it. Doing this incorrectly can be extremely expensive!
- Get yourself a little something. If you buy yourself some flowers, books, or other small amenities, these can be tax deductible as well. Labeled as “fringe benefits,” they’re a good excuse to give yourself a pick-me-up on a stressful day.
Taking self-employed tax deductions can be a tricky process, so we always recommend hiring professional help.
At Tax Defense Ohio, we have saved self-employed individuals thousands of dollars annually. If you want our help or just want to ask us a few questions, give us a call at 614-524-4888!