Working as an independent contractor allows you to be your own boss, which can be very fulfilling, but it also leaves you responsible for filling your own taxes. When filing your taxes as an independent contractor, it is important to make sure that you file for every possible deduction that you can. Believe it or not, there are many deductions that many independent contractors do not take because they do not even know that they are available. Below are a few of the most commonly missed tax deductions available through a company like Alexander & Associates CPA to independent contractors.
Health Insurance Costs
Health insurance is requirement in many states regardless of what occupation you have. If you are self-employed, a portion of the premiums that you pay for your health insurance is deductible when you file your taxes.
Traveling to and from meetings with clients is often a must when you are an independent contractor. Save gas receipts during your travels and you can often deduct a portion of the total when you file taxes. Portions of your maintenance costs may also be deducted, if your job requires a lot of travel.
If you are employed in a field that is ever-changing, you will need to keep up with the changes by continuing your education. Many of the costs associated with continuing your education can be deducted from your taxes, if it pertains to your chosen career field. Keep receipts for the books and supplies that you need for the classes as these as well as the actual cost for the class.
The IRS knows that you need to be able to communicate with your clients in order to get your job done. Some of the money you pay toward your communication costs is tax deductible. Phone bills and Internet costs all count toward communication costs and may count as partial deductions.
Speak with a tax professional to find out if there are any other deductions available to you. He or she will take the time to walk you through the ins and outs of tax filing and help you learn what information is needed to file for each of the available deductions. This ensures you are able to keep as much of your hard-earned money as you possibly can. With proper organization and preparedness, you will be able to get every deduction possible and start saving money right away.Share
14 August 2014
I have always dreamed of opening my own beauty salon, but never seemed to have the money to make that dream come true. I decided that it was time for me to hire an accountant to help me create a savings plan and to assist me in calculating how much money I would need to open my salon. I found out all about what it takes to start a business and a lot of great advice about what I can do to save the money I need to make it happen. If owning your own business is something you are dreaming of, my blog can help.