More Tax Deductions for Independent Contractors
|
Posted by KC Morgan Apr 2, 2009 |
Many work-related expenses can be claimed on taxes to lighten the load paid by independent contractors. The self employment tax can feel like a large burden when other taxes still have to be paid; balance it out with tax deductions that create less taxable income.
Tax Deductions for Independent Contractors
There might be many reasons you have to spend money in your line of work, but there’s no reason you shouldn’t be compensated for this effort. Spending in the name of the job? Save the receipt, document it and start brushing up on what’s tax deductible.
- Subscriptions. Receiving the Wall Street Journal or a number of online newsletters to help you do your job? Any time you spend your own money in the course of work, even for subscriptions, you can claim the expense as an independent contractor.
- Thank you cards, gifts, etc. Sending out cards to employers and potential employers? Having business cards printed to get new jobs? Such purchases are tax deductible - so go ahead and claim them.
- Retirement and 401k plans. You don’t have an employer to provide you with a retirement fund, life insurance policy or 401k - so you’ve done the responsible thing and purchased your own. Paying the premiums, however, is a huge burden when you have to pay such high taxes, too. There is some relief! Retirement, 401k plans and other similar expenses are tax deductible.
- Telephone costs. Calling potential clients and employers? Using the phone for the job? Some of the bill - and the related equipment purchases - is absolutely tax-deductible.