4 Deductions Self-Employed Professionals Should Utilize

Being self-employed can often feel like having two jobs rolled into one: not only do you have your work or service you provide, but you often have to solicit new business, do your own marketing, bookkeeping, expense tracking and so on. Although you’d likely be best served by a CPA, here are a few deductions to help maximize your tax return.

Business travel costs

Track everything when you travel for work! This includes gas, meals, lodging, airfare, train tickets, even regular maintenance on a work vehicle. Remember that any non-business activities along the route cannot be deducted as a business expense. That means if you take a detour to see your parents on the way to a business conference, you cannot deduct any expenses incurred related to your detour.

Social security taxes

You can write off half of what you pay in social security taxes. This is only applicable if you’re self-employed and thus are paying the full 15.3% tax by yourself, instead of splitting the cost with an employer.

The home office deduction

Your business may have an office or facility, but odds are if you’re self-employed you do at least some work at home. While no one really enjoys bringing their work home, the good news is that if you have a dedicated business work space in your home, you can deduct that from your tax liability. This includes part of your rent, any associated utilities (e.g., your internet service fee), or you can use the simplified method: deduct $5 for every square foot that qualifies for the deduction.

Health insurance premiums

If you’re self-employed you can deduct medical insurance premiums for yourself and your family. Further this applies whether or not you itemize your deductions, but you’re automatically disqualified for the deduction if you are eligible for employer-sponsored health insurance through another job.

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