List Of Tax Deductions For Self-Employed

It’s that time of year again – tax season! Whether you file your taxes as soon as you can or wait till the last minute (like I do), you’ll need to know what you can write off as tax deductions and what you cannot. Being self-employed, these tax deductions can really add up to substantial tax savings so I hope you saved your receipts!

Before I proceed, this is a generic list of tax deductions for self-employed individuals, such as myself, but it’s best to speak with a tax accountant if you have specific questions or concerns.

What Can Be Deducted Exactly?

Do you second guess and question what can be deducted? Same here. We all do! Every business is somewhat different and every self-employed individual will have different expenses that they will question if they can deduct or not.

So, what can be deducted exactly? Well, any expense that is “common and accepted in your trade or business” and/or that is “helpful and appropriate for your trade or business” can be deducted.

I know that seems generic but being self-employed can cover so many different jobs. I mean, say you’re a personal trainer, you’ll have different types of deductions than a web designer. With that said, I’m going to include as many items as I can for this list of tax deductions for self-employed.

List Of Tax Deductions

– Individual Retirement Account (IRAs)
– Home Office Expenses (telephone lines, internet, electricity, etc): You’ll have to document this and break down the costs between personal vs business use.
– Car Expenses: If you use your car to travel for business, you can either file the actual expenses incurred or use the standard mileage rate.
– Travel (For Business): Plane tickets, hotel fees, taxi, meals, passport, etc can be deducted.
– Education/Research: Books, courses, webinars, even subscriptions to publications can qualify if it’s furthering your education related to your work.
– Promotion/Advertising: Advertising, costs of someone designing an ad banner, etc.
– Entertainment: If you’re entertaining guests, customers or clients for business purposes then this can always be deducted.
– Equipment/Supplies: Business use of computer, office supplies, etc.
– Postage
– Business liability insurance premiums
– Legal and Professional Services: Including tax preparation fees
– Interest on Business Loans
– Self-Employed health insurance (Partial)
– Rental of Business Property
– Office Rent
– Business Licenses

I’m sure there are a lot of deductions I’ve missed and some of these may not even apply to you directly but you’ll have a general sense on what you can deduct. Again, it’s best to consult with a tax accountant for your specific case. I mean, if you’re a model, you can deduct gym membership expenses!

Unfortunately, I am not a model so I’ll be consulting with my tax accountant.

Let me know if there’s anything else you’ve deducted as a self-employed individual and I’ll add it to this list (and give you a shout out!).