Self-Employed Tax Write Offs

Do you qualify as a self-employed professional?

Tas Write Offs
Tas Write Offs

If you considered yourself a self-employed professional and wondering what may qualify as a business expense, this post is for you. Self-employed tax write offs are a real thing. 

As a self-employed professional myself, I had to start thinking as a small business. There were costs that were billed to me so I can provide services for my customers. Not to mention, healthcare costs, rent, software subscriptions, marketing fees, new website costs, and the list can go on. I did extensive research on those as, I wanted to know all the business expenses that I can deduct. My business should pay for them because that’s the main purpose of why I spent the money in the first place. If you do not know whether, you qualify as self-employed, see IRS‘s guidance on this.

  1. Insurance and Retirement Plans Write Offs

Let’s say that my health insurance costs to this day are the biggest monthly business expenses I have. I cover my family of 4 through my plan and let me tell you that it is not cheap! My healthcare plan does not include dental and vision. So that’s an additional cost. Who pays for it? My business. 

There are a few retirement plans that give you a tax advantage like 401 (k), SIMPLE IRA, and SEP IRA. My advice is to work with a financial adviser as they are the pros and will manage this plan for you.

  1. Rent and Office Equipment Write Offs

My number two business expense is rent and office equipment. If you are self-employed and working from home, to claim rent as a business expense may be hard as there is a gray area there. Ask you Tax CPA and they will give you the best advice for free. 

Office equipment, though, is one of the most common business expenses. What falls into this category? Let me give you a few examples: desks, monitors, laptops, chairs, and any other furniture you use for your office. Many of those are a one time expense, but you should claim it. 

  1. Certification and Education Write Offs

Personally, this is a higher cost for me because as an accountant and auditor, I need to meet my education requirements. Also, it helps me keep up-to-date with what’s going on in the profession. 

Even during COVID, my education expenses were high. e-learnings and video conferences were costly. Rightly so though. However, now that conferences and training are starting to be held in person, those costs will start skyrocketing again like: airfare, hotels, taxi, meals, and other travel related expenses. 

  1. Marketing Write Offs

Lastly, marketing. Any advertising costs you are incurring are business expenses. If you are hiring a marketing agency to help with a strategy plan, build up your social media presence, launch products they are all business expenses. Think about it this way. If the money were spent for your business, then the business should pay for it. 

  1. Phone, Shipping, Parking, Internet Write Offs

Some of those items can fall into the gray area too, but if your business involves shipping products to your customers or other businesses that’s a business expense. 

If your office building does not provide parking and you need to pay for monthly or daily parking to be able to work, that’s a business expense

Phones and the internet are the tricky ones. If you have a landline in your office and you only use it for business expenses, that’s a business expense. However, if you have a cell phone that you use partially for business, and partially for personal reasons, that’s more complicated. The same with the internet costs. Check out the IRS self-employed section for more direction here.

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