From managing yourself to working with a wide range of people, there are many benefits that come with being self-employed. If you don’t have a fixed employer and offer services to the public, you might be defined by the Internal Revenue Service (IRS) as an independent contractor. This is often the case with doctors, lawyers, contractors, consultants, and rideshare drivers. When it’s time to pay taxes, an accountant will help you gather the necessary documents to prepare an accurate return. Here are a few deductions they’ll help you claim to minimize your expenses.

What Can You Claim as an Independent Contractor?

1. Home Office Costs

A simple formula will help you determine the yearly expenses you can deduct for a home office. To start, calculate the square footage of both your home and your work space. Dividing the square footage for your office by the total area of your home will give you the percentage you can deduct.

Even if you don’t have a designated work space, you can usually still take deductions for office supplies and utility bills.

2. Client Meetings 

Independent contractors often go out for coffee, drinks, and meals with their clients during their projects.

If you had these expenses, you can deduct up to 50% of all the meals you shared with your clients. To do this, you’ll need receipts for every outing. 

3. Business Travel Expenses

Whenever you take short-term trips for work (shorter than one year), you can deduct the expenses.

Throughout the year, save receipts from all travel-related activities, including airfare, dry cleaning, transportation, and lodging. If you work and live in more than one state, you may deduct these expenses from taxes for your home state.

If you need help filing your taxes as an independent contractor, turn to the accountants at Engelson & Associates in Holmen and La Crosse, WI. Serving the Tri-State Area, these knowledgeable professionals will evaluate your expenses to ensure you receive all the deductions you’re qualified for. Visit their website to learn more about their accountant services, and call (608) 526-3437 for Holmen or (608) 788-2181 for La Crosse.