Being your own boss brings some benefits for you. One of the greatest from most people includes having a more flexible schedule. Setting your own hours and working when you can will alleviate a lot of issues in life. However, there are things that may not be as appealing, such as not having company benefits. One way to help offset this is by the numerous tax deductions you can qualify for by being self-employed. Knowing what some of these are can be extremely helpful to you.
Deduction #1: Home office
It's likely that you may have a specific area of your home dedicated to your work. Having a home office can help you stay organized and less likely to remain unfocused as the day moves along.
The good news is you can deduct this portion of your home from your taxes. There is a particular formula that will be used by your accountant that will determine the precise amount for you.
Deduction #2: Office expenses
It's possible you may need a new computer to do your work or a printer at some point. The charges you pay for your Internet and phone can be deducted from your taxes if these are necessary for you to get your work accomplished.
You can even add up smaller items, such as office paper or a new desk to your office expenses and this can increase the number of your costs.
Deduction #3: Travel costs
Do you have to stay overnight at various locations while working for your business? What about the transportation costs to get there? All of the expenses you have to pay for traveling are ones you can deduct for tax purposes, and this can enable you to pay less.
Deduction #4: Meals
Many self-employed individuals have to entertain clients or customers at varying times, and this can get costly. Taking these people that help your business out to lunch can get expensive, but this is a deduction you can take when it comes to filing your tax return.
Knowing some of the ways you can decrease your tax costs are sure to be helpful when it comes to saving money each year. Taking the time to know what deductions you qualify for can help you enjoy the biggest tax savings. Be sure to consult with your accountant regarding tax management to ensure you follow the tax laws correctly and make the right deductions for your business today.Share