Tax Deductions for Independent Contractors
|
Posted by KC Morgan Apr 1, 2009 |
There are many different tax deductions for independent contractors, and self employed professionals should take advantage of every single one they can. Learn what’s tax deductible, and save yourself some of those tax time expenses.
Work at Home Tax Deductions
Think the self employment tax is a burden? Claim expenses whenever possible, and learn which tax deductions will lighten the load. These are just a few work at home tax deductions you should keep in mind when it comes time to pay out for the income you earned as an independent contractor through the year:
- Health insurance. Supporting yourself with your work at home and/or self employment efforts? Independent contractors can receive a tax deduction for 100% of their health insurance expenses, both for themselves and their dependents. Professionals who do not receive health benefits through a spouse or employer, but who pay the entire cost of health insurance on their own, can always claim a little tax relief.
- Home office space. Some mortally fear claiming a home office, fearing it’s a giant red flag to the IRS. Some tax experts, however, say this is a false fear. If you truly have a home office space, then you have nothing to worry about anyway. Claim the expense of having a home office, because any little tax deduction helps.
- Furniture and equipment. Need a new chair for the desk? A new keyboard for the computer? Any office-related purchase that’s made for work, including furniture and equipment, is tax deductible.
Take advantage of tax deductions, and claim expenses for every purchase that's made in the line of work. Paying out at tax time, rather than receiving a windfall like so many others, is already a bit of a drag. Paying out more than you should - now, that's a fate you should never have to face.