Are you an independent contractor looking to maximize your tax savings?
Look no further! There are a number of tax benefits available to you. And they’re quite different from what you’d get as an employee. Below, you’ll learn some ways to keep more of your hard-earned money.
What tax deductions do I get as an independent contractor?
Self-employment tax deductions: As an independent contractor, you’re responsible for paying self-employment taxes. But did you know that you can deduct half of these taxes from your income tax? That’s money back in your pocket!
Home office deduction: If you work from home, you can also deduct expenses related to your home office. That includes things like rent or mortgage interest, utilities, and internet and phone expenses. You’re basically getting paid to work from home!
Travel and transportation expenses: As an independent contractor, you’re also eligible for deductions on work-related travel and transportation expenses. That means you can deduct expenses such as airfare, lodging, and meals. You can also deduct the cost of transportation to and from work-related events and meetings. Time to plan your next work trip!
Equipment and supplies deductions: Don’t forget that you can also deduct the cost of equipment and supplies that you use for work, such as your computer, software, and office supplies. Every little bit helps.
Retirement savings: Finally, as an independent contractor, you can set up a retirement account and contribute pre-tax income to it. This can help you save for the future while also reducing your taxable income. It’s never too early to plan for retirement!
Being an independent contractor has its perks, including tax benefits that can help you keep more of your hard-earned money. By taking advantage of these deductions and savings options, you can enjoy the freedom and flexibility of being your own boss, while also enjoying the financial benefits.