Self-Employed Tax Deductions

Written by Eddy Hood

When you are self-employed, you can be hit hard by taxes. In addition to your income tax, you will need to pay self-employment tax, as well. Self-employment taxes cover the Medicare and Social Security portion of your taxes. However there are a number of self-employed tax deductions you can claim to lower your overall tax bill. These deductions can add up, so it is important to save your receipt to help determine what qualifies as a deduction and what does not. Self-employed deductions have strict guidelines, but an accountant can help you determine what you can claim.

At Ignite Spot, we can help you understand the tax deductions for self-employed individuals. You can deduct a portion of your self-employment tax in addition to your office expenses, travel expenses, and marketing expenses. It is important to keep careful records of all of your business-related expenses so you can claim as many self-employed business deductions as possible. Your bookkeeping records can also help to determine additional deductions you may qualify to claim.

One of the best tax deductions for self-employed individuals is the home office deduction. If you work from home, you can claim the home office deduction. It allows you to claim a percentage of your utilities, mortgage or rent and other home-related expenses if you have a home office. To qualify, however, you must have a dedicated space used only for your business activities.

It is important to follow the IRS guidelines for tax deductions. This can prevent your return from being flagged for review. At Ignite Spot, our team can help you understand each of the self-employed tax deductions. Since we focus on small businesses, we can work with you to find every deduction you are qualified to claim. We can also help you determine how much you need to pay for your quarterly payments each year. Whether you file as an individual or an LLC, we can help you through filing your tax return each year.

When you file your taxes yourself, you may miss some of the self-employed deductions. Outsource accounting can help you save money on your taxes. It is important to have a plan when it comes time depreciate assets and to take advantage of any breaks in the tax code. At Ignite Spot, we understand how to do this, and we help you file your taxes so that you save money each year. We can help you stop worrying about your taxes, so you can focus on growing your business.

We specialize in helping small businesses and self-employed workers with their accounting needs. We offer bookkeeping services in addition to our tax return services. When you are operating a small business it makes sense to have some of these services outsourced. You can contact your accountant online and download reports when you need them. To find out how our firm can help you grow your business with outsourced accounting services, contact us today!

Learn More About Our Tax Services

1. What is the Federal Unemployment Tax Act (FUTA)?
2. Understanding Self Employment Taxes
3. How to File Self Employment Taxes
4. Tax Implications of The Affordable Care Act on Small Businesses
5. The Guide to Small Business Tax Preparation and Deductions
6. How to File Small Businesss Taxes
   
7. What is a Tax Write-Off?
8. Small Business Tax Write-Offs