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Tax Deductions for Freelancers and Independent Contractors

a year ago
12

As a freelancer or independent contractor, there are several tax deductions that you may be eligible for. These deductions can help reduce your taxable income and ultimately lower your tax bill. Some common tax deductions for freelancers and independent contractors include:

  • Home office expenses: If you use a dedicated space in your home for work, you may be able to deduct a portion of your rent or mortgage, utilities, and home insurance.
  • Business supplies: Expenses for necessary supplies such as computers, software, office furniture, and stationery can typically be deducted.
  • Professional services: Fees paid to accountants, lawyers, and other professional services directly related to your freelance work are usually deductible.
  • Travel expenses: Costs for business-related travel, including mileage, airfare, lodging, and meals, may be deductible.
  • Health insurance premiums: If you are self-employed and pay for your own health insurance, you may be able to deduct the premiums.

It's important to keep detailed records and receipts for all business-related expenses to support your deductions. Additionally, the IRS website and publication 535 (Business Expenses) provide comprehensive information on allowable deductions for freelancers and independent contractors.

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