Self-Employed Deductions 2022: What are the best tax deductions?

Oith the pandemic dramatically changing the way business is done, more people in the UNITED STATES begin to leave the traditional labor market to become self-employed.

The titles of 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 owners or working professionals, the self-employed are liable to pay taxes at the IRS.

Regardless of whether you are operating with a profit or a loss, it is important to use all the deductions to which you are entitled.

Eight tax deductions freelancers can use

Here is a list of eight tax deductions that freelancers or other self-employed people can take advantage of.

  1. Deductions for training and studies: All work-related education expenses are eligible for deductions on your tax return. This could take the form of an online or in-person course or seminar.
  2. 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, that expense can be deducted.
  3. Deduction for head office: If you work from home, you can claim a host of expenses as deductions, including rent, insurance, and utilities.
  4. Telephone deductions: Your business phone bills are deductible, whether for calls or the cost of a data plan.
  5. Health insurance deductions: Although health insurance plans can be expensive for the self-employed, there are provisions in place to write off this expense as a tax deductible.
  6. Deductions for retirement savings: Contributions to qualified retirement plans, such as a 401(k) plan or SEP IRA. A, may be eligible for a deduction.
  7. Advertising deduction: Deductions are allowed for advertising expenses such as billboards, online marketing, etc.
  8. Rent deduction: Rent you pay for property you don’t own can be deducted as a business expense, especially if you work from home.

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