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Self-employed workers face a higher tax liability than traditional employees, but the code also provides benefits that can substantially reduce their burden. Taking the time to understand the deductions and credits available before starting your business tax returns could save you hundreds or even thousands of dollars. Below are some of the most important tax benefits self-employed workers and freelancers can take advantage of.

A Guide to Tax Benefits for the Self-Employed

1. Home Office Deduction

If you have a dedicated workspace in your house or apartment that’s used exclusively for work, the home office deduction allows you to write off a variety of expenses. For instance, you may be able to deduct a portion of your mortgage or rent, utility expenses, and some of your telecommunications costs. 

2. Travel Expenses

business tax returnMany self-employed professionals regularly travel to attend conferences, provide services, or meet with potential clients. If you’re traveling exclusively for business, you may deduct flights, hotels, and a portion of the meals on your business tax returns. 

3. Health Insurance Premiums

In addition to an additional tax burden, self-employed workers are also responsible for their own health insurance coverage. Fortunately, these expenses are fully deductible, including insurance you purchase for your children or spouse. 


 

With over 20 years of experience in business tax return preparation, Donna J Troutman CPA PC helps self-employed workers throughout the Lewisburg, PA area maximize their tax benefits and avoid common mistakes that can trigger an audit. No matter what industry you’re in, this firm will find every deduction and credit you qualify for and ensure all your returns are submitted correctly and on time. Visit them online for an overview of their services, or call (570) 523-7337 to start planning for your business taxes today.

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