![]() Some top-level categories of expenses to always track are supplies, home office, bank fees, business meals, internet, utilities, legal, and professional services. ![]() Overall, as a sole proprietor business be aware that self-employed tax deductions should be a priority. Some other expenses you don’t want to forget are uniforms, personal protective equipment (PPE), advertising, and cleaning supplies to name a few. Make sure you keep track of your mileage driven and your actual expenses so that you can deduct your maximum expenses you’re eligible for. You will either be able to take the standard mileage deduction(58.5 cents per business mile January 1 – June 30, 2022, 62.5 cents per business mile for the second half of 2022) or deduct your actual car expenses like gas, repairs and maintenance based on your business use, whichever is more. If you are working as a Caregiver you are most likely driving from your home to another location to take care of someone and the business use of your car can be one of your biggest expenses. Finally, it’s good to understand that commissions from sales are not tax-deductible unless you pay them to another agent on your team, but you can deduct broker fees. Marketing expenses such as advertising will make an impact as well. The IRS stipulates no more than $25 per recipient can be deducted. In addition, gifts are given a lot in real estate which also qualifies for a deduction. Taking the standard mileage deduction is usually the best option, but for some, the actual cost method works in their favor when the miles count is low. One of the biggest areas to consider is maximizing tax deductions for the business use of your car. Real Estate AgentĪs a real estate agent, writing-off your related business expenses can make a significant difference in lowering your taxes. ![]() Use our self-employed calculator, and choose your most relevant job type to see the top deductions you may be eligible for. Common deductions include travel expenses, home office, and supplies while lesser-known deductions include retirement plan considerations, medical plans, and cleaning services. If you work as an independent contractor where your income is recorded on 1099 ’s, you have quite a few options when it comes to tax deductions. Review our Tax Tips for Uber, Lyft and Other Car Sharing Drivers for more in-depth information. If you spend money on your car while working in a rideshare capacity, save receipts and track all expenses in addition to mileage if you don’t claim the standard mileage deduction because you may be able to deduct them from your income, lowering your taxes. Working as a rideshare driver for Uber or Lyft (and others) has tremendous tax advantages related to tax deductions for business use of your car like the standard mileage deduction which is 58.5 cents per business mile January 1 – Jand 62.5 cents per business mile the second half of 2022, but leveraging all deductions is key to maximizing your refund.įurthermore, common expenses that can be used as deductions include vehicle cleaning, passenger goodies, maintenance, parking and tolls, and more. You can come to TurboTax and fully hand your taxes off to a TurboTax Live Self-Employed tax expert who can do your taxes from start to finish.īelow is more information regarding the TurboTax Self-Employed Tax Deductions for some of the most popular careers. When you are ready to file your taxes, TurboTax Self-Employed will guide you and search for industry specific deductions that you may not even know about. Our calculator allows you to select your specific self-employed industry(over 30) and discover what self-employed business tax write-offs and expenses you can deduct as a 1099 independent contractor or freelancer so you don’t leave any money on the table. To help you uncover tax write offs specific to your business, we created a fun and engaging Self-Employed Tax Deductions Interactive Calculator that will help you uncover self-employed tax deductions to help you save on your taxes whether you are a dog walker or a content creator. If this is you, you may be wondering, “now that I am making money from my self-employed business, how can I save money on my taxes?” and “what are some self-employed expenses I can deduct?” People have jumped into everything from being online merchants to content creators and influencers on platforms like TikTok, OnlyFans, and Instagram. We’ve experienced the full force of the Great Resignation and have seen many turn to self-employment in the wake of the pandemic.
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