When you first begin your self-employment journey, it can seem overwhelming. There are so many things that you are responsible for handling. When tax time comes around your taxes are even more complicated. However, the good news is there are tax benefits for the self-employed. Listed below are some of the more significant tax benefits for self-employed taxpayers.
Home Office Deduction
For those who are working out of your home, you get to claim the home office deduction. This deduction allows you to write off a percentage of your mortgage or rent, based on how much space your home office takes up and the percentage of time you work from your home office. While this deduction is complex, if you qualify for it, it will allow you to see that your hard work is paying off.
Internet and Phone
If you use your phone and internet exclusively for your business, you can deduct it 100%. Additionally, if you have one phone/internet that you use for personal and business use, you may still be able to deduct a percentage of the bill based on your usage percentages.
Interest
Did you take out a loan for your business or maybe you have a business credit card. Whatever the case may be, as long as you used the funds for your business, the interest is tax deductible.
Closing Thoughts
There are numerous tax benefits available for those who are self-employed; you just have to make sure that you claim them so you can get some of your hard-earned money back.
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