Top Tax Deduction Tips for Self-Employed Workers

Being self-employed can be incredibly rewarding. The freedom, flexibility, and potential for growth are undeniable. However, as you know, there's a flip side to this entrepreneurial coin – taxes. Being self-employed often means you're responsible for managing your own tax liabilities. And let's face it, taxes can be a bit of a headache.

But here's the good news: there are a ton of tax deductions specifically designed for self-employed individuals. These deductions can help you significantly reduce your tax bill, putting more money back in your pocket.

Today, I'm going to dive deep into the world of tax deductions for self-employed workers, drawing on my own experience as a self-employed professional. I'll break down the top deductions, explain how they work, and share valuable tips for claiming them.

1. The Home Office Deduction: Make Your Home Work for You

If you’re like most self-employed individuals, you probably work from home, whether it’s a dedicated office space or just a corner of your bedroom. And here's the good news: the IRS recognizes that your home is also your workplace. You can claim the home office deduction to help offset the costs of your business operating from home.

Here’s what you can deduct:

Mortgage or rent: You can deduct a portion of your mortgage interest or rent payments based on the percentage of your home used for business.
Property taxes: You can deduct a portion of your property taxes based on the percentage of your home dedicated to your business.
Utilities: You can deduct a portion of your utilities (electricity, gas, water, etc.) based on the percentage of your home used for business.
Repairs and maintenance: If you make repairs or improvements to your home, you can deduct the cost of those repairs or improvements that directly relate to your business space.

How does it work? The IRS offers two methods for calculating your home office deduction:

The Simplified Method: If you opt for the simplified method, you can deduct $5 per square foot of your home used for business, up to 300 square feet. So, if you have a 100-square foot office, you can deduct $500 for the year.
The Actual Expense Method: This method requires a bit more record-keeping. You’ll need to calculate the percentage of your home’s square footage used for business, and then you can deduct the actual expenses related to your home office based on that percentage.

2. Self-Employment Tax Deduction: A Big One!

The self-employment tax is a beast. As a self-employed person, you have to pay both the employer and employee portions of Social Security and Medicare taxes, which can be a pretty hefty chunk of your income.

Here's the good news – you can deduct half of your self-employment tax as a business expense.

How does it work? Let's say your self-employment tax for the year is $2,000. When you file your taxes, you'll pay that $2,000, but you can also deduct $1,000 on Schedule C.

3. Health Insurance Deduction: Protect Your Health, Save on Taxes

If you purchase health insurance for yourself, your spouse, or your dependents, you can claim a deduction for those premiums. This is a significant advantage for self-employed individuals since you’re responsible for covering your own health care costs.

Here’s what you can deduct:

Premiums for health insurance: You can deduct the cost of health insurance premiums for yourself, your spouse, and dependents.
Premiums for long-term care insurance: You can also deduct premiums paid for long-term care insurance, but there is a limit to the deduction amount based on your age.

How does it work? This deduction is treated as an adjustment to income on Schedule 1 of Form 1040, not on Schedule C. Keep in mind that the deduction is not available if you have access to health insurance through an employer-subsidized plan.

4. Continuing Education Deduction: Invest in Yourself, Invest in Your Taxes

Continuing education is key for self-employed individuals. Staying up-to-date on the latest industry trends, skills, and techniques is essential to your professional growth.

Here’s what you can deduct:

Tuition: You can deduct the cost of your tuition for courses that are required to maintain or improve skills needed in your current work.
Books, supplies, and lab fees: You can also deduct the cost of books, supplies, and lab fees related to your courses.
Transportation and travel expenses: You can deduct the cost of transportation to and from your classes.

How does it work? The deduction is available for courses that are either required to maintain or improve your skills in your current line of work or are needed to meet the minimum educational requirements of your current trade or business. However, this deduction is not available for courses that are taken to meet the minimum educational requirements of your current trade or business or for courses that are part of a program of study that will qualify you for a new trade or business.

5. Mileage Deduction: Keep Track of Those Miles

Driving is a common expense for self-employed individuals. You're driving to client meetings, picking up supplies, and traveling for business events. And those miles can add up!

Here’s what you can deduct:

Standard mileage deduction: You can deduct 67 cents per mile for every mile driven for business purposes.
Actual car expenses: You can also deduct the actual expenses you pay for your car, like gas, oil, repairs, insurance, lease payments, etc.

How does it work? You can use either the standard mileage method or the actual expense method. If you choose the standard mileage method, you’ll need to keep a mileage log. If you use the actual expense method, you can deduct the actual expenses that you incur for your car.

6. Retirement Savings Deduction: Save for the Future, Save on Taxes

Retirement planning is crucial for self-employed workers. As a self-employed individual, you’re responsible for setting up and funding your own retirement plan. Fortunately, there are several tax deductions available for retirement savings.

Here’s what you can deduct:

Contributions to a Solo 401(k): A Solo 401(k) allows you to contribute both as the employer and the employee. You can make pre-tax contributions to your Solo 401(k) as both the employer and the employee.
Contributions to a SEP IRA: A SEP IRA is a retirement savings plan that allows you to contribute as a self-employed person. You can deduct up to 25% of your net self-employment income in 2024.
Contributions to a SIMPLE IRA: A SIMPLE IRA is a retirement savings plan that allows you to contribute both as an employee and as a self-employed person.

How does it work? The Solo 401(k) and the SEP IRA operate similarly. Contributions are pre-tax, and withdrawals are taxed in retirement. The contributions are subject to annual limits set by the IRS.

7. Business Insurance Premium Deduction: Protect Your Business, Reduce Your Tax Burden

Business insurance is essential for protecting your business from unexpected events. And the good news is, premiums paid for most business insurance policies are deductible.

Here’s what you can deduct:

Business liability insurance: This type of insurance protects your business from lawsuits.
Business property insurance: This type of insurance protects your business from damage to your property.
Business health insurance: If you provide health insurance to your employees, you can deduct the premiums you pay for those plans.

How does it work? You can deduct the cost of your business insurance premiums on Schedule C.

8. Office Supplies Deduction: The Everyday Essentials

The items that you use to run your business daily, like office supplies, pens, and paper, can also be deducted on your taxes.

Here’s what you can deduct:

Office supplies: This includes pens, paper, staples, envelopes, ink cartridges, and other similar items.
Computer hardware and software: If you use your computer for business, you can deduct the cost of the computer and software.

How does it work? You can generally deduct the cost of supplies and materials you purchase during the tax year. However, you’ll likely need to depreciate the cost of larger items, like computers or equipment, over time.

9. Credit Card and Loan Interest Deduction: Get a Handle on Your Financing

If you use your credit cards or business loans for business expenses, you can deduct the interest you pay on those accounts.

Here’s what you can deduct:

Credit card interest: You can deduct the interest you pay on business purchases made with a credit card.
Business loan interest: You can deduct the interest you pay on loans that are used to finance your business.

How does it work? Make sure you’re only deducting interest on expenses that were directly related to your business.

10. Phone and Internet Costs Deduction: Stay Connected, Save on Taxes

As a self-employed person, you likely use your cell phone and internet for business purposes. Fortunately, you can deduct the cost of these expenses.

Here’s what you can deduct:

Cell phone bill: If you have a dedicated cell phone line for business, you can deduct the entire cost of your monthly bill.
Internet bill: If you have a dedicated internet line for business, you can deduct the entire cost of your monthly bill.

How does it work? You can deduct the entire cost of your cell phone or internet bill if those services are used exclusively for business. If you don’t have a dedicated phone line or internet connection, you can deduct the percentage of your bill that was used for business purposes.

11. Business Travel and Meals Deduction: Travel Smart, Save Smart

Travel and meals are common expenses for self-employed individuals. Fortunately, you can deduct a portion of these expenses as long as they're directly related to your business.

Here’s what you can deduct:

Airfare, bus, train, or car expenses: You can deduct the cost of travel to and from your business destinations.
Hotel or motel costs: You can deduct the cost of your lodging.
Meals: You can deduct 50% of the cost of meals that are directly related to your business.

How does it work? To qualify for this deduction, your travel expenses must be considered ordinary and necessary for your business. Meals must be directly related to your business and must not be considered extravagant. You can also deduct any tips and fees you pay for transportation or lodging, as well as dry cleaning and laundry expenses while traveling for business.

12. Startup Costs Deduction: Get Your Business Up and Running

You’re probably familiar with the expenses you incur before you even open your business doors. Fortunately, you can deduct many of these expenses.

Here’s what you can deduct:

Advertising: This includes expenses like creating a website, designing marketing materials, and running ads.
Consulting fees: You can deduct fees you paid to consultants who helped you set up your business.
Employee training: You can deduct the cost of training new employees.
Travel expenses: You can deduct travel expenses related to setting up your business.
Registration fees: You can deduct fees for incorporating your business or obtaining any necessary licenses.

How does it work? You can deduct up to $5,000 in startup costs and $5,000 in organizational costs if your business is a sole proprietorship. The deduction is phased out if your startup and organizational costs exceed $50,000. For example, if your total startup and organizational costs are $53,000, your deduction will be reduced to $2,000. You can deduct the remaining startup and organizational costs over a 15-year period.

13. Advertising Deduction: Get Your Name Out There

Advertising is essential for any business. It helps you reach new customers and grow your brand. And the good news is that you can deduct your advertising expenses!

Here’s what you can deduct:

Advertising expenses: This includes the cost of print ads, radio ads, television ads, and online ads. You can also deduct the cost of marketing materials, public relations, and other marketing efforts.

How does it work? To qualify for this deduction, the advertising must be related to your business and you should reasonably expect to gain in the future as a result of the advertising.

14. Memberships Deduction: Join the Club, Reduce Your Taxes

Professional associations and business organizations can provide valuable networking opportunities, resources, and education. Fortunately, you can deduct your membership dues!

Here’s what you can deduct:

Membership fees: You can deduct the cost of membership fees for professional organizations, trade associations, business leagues, chambers of commerce, and other similar organizations.

How does it work? The deduction is available for membership fees that are related to your business.

15. The Qualified Business Income (QBI) Deduction: A Powerful Tool

The QBI deduction is a powerful tool for self-employed individuals and small business owners. This deduction allows you to deduct a portion of your business income from your taxable income, which can significantly reduce your tax bill.

Here's what you can deduct:

A portion of your business income: You can deduct up to 20% of your qualified business income.

How does it work? The QBI deduction is available for businesses that operate as a sole proprietorship, partnership, S corporation, or LLC. The deduction is subject to certain limitations, including income thresholds and certain industry restrictions.

16. Charitable Gifts Deduction: Give Back, Get a Tax Break

Charitable donations can be a great way to give back to your community and support causes you care about.

Here’s what you can deduct:

Cash donations: You can deduct cash donations up to 60% of your adjusted gross income.
Donations of goods or services: You can deduct the fair market value of donations of goods or services.

How does it work? To qualify for the charitable donation deduction, you must claim it on Schedule A of Form 1040. You cannot deduct donations exceeding $2,000 if made in cash.

17. Employee’s Pay Deduction: Hiring Help, Saving Money

If you hire employees, you can deduct the cost of their salary and wages on your taxes.

Here’s what you can deduct:

Employee wages: You can deduct the wages you pay to your employees.

How does it work? Make sure that your employees are paid a reasonable amount for their services.

18. Business Insurance Deduction: Protect Yourself, Protect Your Wallet

Business insurance is essential for protecting your business from unexpected events. And thankfully, most business insurance premiums are deductible.

Here’s what you can deduct:

Fire, theft, or flood insurance: You can deduct the cost of premiums for insurance that protects your business from these types of events.
Business liability insurance: You can deduct the cost of premiums for insurance that protects you from lawsuits.
Workers’ compensation insurance: You can deduct the cost of premiums for insurance that protects your business from workplace injuries.
Malpractice insurance: You can deduct the cost of premiums for malpractice insurance if you are in a profession that requires it, such as medicine or law.
Vehicle insurance: If you use a car for business, you can deduct the cost of insurance premiums for that vehicle.
Disability insurance: You can deduct the cost of premiums for insurance that will provide income if you are unable to work due to a disability.
Life insurance: You can deduct the cost of life insurance premiums for employees if you are a business owner.

How does it work? Make sure that the insurance premiums are paid for a business purpose.

19. Interest Expense Deduction: Get Your Finances in Order

Interest expenses, such as interest on business loans, credit card debt, or mortgage debt, are generally deductible as long as the debt is used for a business purpose.

Here’s what you can deduct:

Interest on business loans: This includes loans used to purchase equipment, inventory, or real estate for your business.
Interest on credit cards: You can deduct interest on credit cards used for business expenses.
Interest on mortgages: You can deduct interest on business mortgages, but you cannot deduct interest on mortgages on your primary residence.

How does it work? You can deduct interest expenses related to business debt, but you cannot deduct interest related to personal debt. For example, if you take out a personal loan to buy a car that you will use for business, you can’t deduct the interest on the loan.

20. Taxes and License Fees Deduction: Stay Compliant, Save Money

Taxes and license fees can add up quickly. Fortunately, you can deduct many of these expenses on your taxes.

Here’s what you can deduct:

State income taxes: You can deduct the state income taxes paid on your business income.
Real estate taxes: You can deduct real estate taxes paid on property used for your business.
Sales taxes: If you collect sales taxes from customers, you can deduct the sales taxes you paid on business purchases.
Property taxes: You can deduct property taxes paid on your business property.
Fuel taxes: You can deduct fuel taxes paid on gasoline, diesel, and other fuels used in your business.
License fees: You can deduct license fees paid to operate your business.

How does it work? Make sure that the taxes and license fees are directly related to your business.

21. Supplies and Materials Deduction: The Cost of Doing Business

Any supplies and materials that you use to run your business are generally deductible, whether you’re using them for manufacturing, selling, or everyday operations.

Here’s what you can deduct:

Office supplies: This includes pens, paper, envelopes, staples, ink cartridges, and other similar office supplies.
Manufacturing supplies: If you are involved in manufacturing, you can deduct the cost of raw materials, packaging supplies, and other materials used in production.
Other business supplies: This includes materials like cleaning supplies, promotional materials, and other supplies specific to your industry.

How does it work? You can generally deduct the cost of supplies and materials that you purchase during the tax year. If you’re using them for manufacturing, the costs are typically deducted as part of the cost of goods sold. If you’re using them for everyday operations, you can deduct them as a separate business expense.

22. Bad Debts Deduction: When You're Owed Money

If a customer owes you money and doesn't pay, you can deduct that amount as a bad debt on your taxes.

Here’s what you can deduct:

Bad debt: You can deduct a business bad debt as a business expense.

How does it work? You must have included the amount of the bad debt in your gross income for the current or a previous tax year.

23. Depreciation and Section 179 Expense Deduction: Deduction for Long-Lived Assets

If you purchase a long-lived asset for your business, like equipment or furniture, you can generally deduct the cost of that asset over time through a process called depreciation.

Here’s what you can deduct:

Bonus depreciation: This allows you to deduct a significant portion of the cost of a new asset in the year you purchase it. For 2024, you can deduct 60% of the cost of qualified assets purchased in 2024.
Section 179 expense: This deduction allows you to deduct the full cost of an asset in the year you purchase it. The deduction limit for 2024 is $1,220,000.

How does it work? You can deduct depreciation on Schedule C. For bonus depreciation, you’ll need to use Form 4562.

24. Charitable Gifts Deduction: Give Back to Your Community

As a self-employed person, you may want to give back to your community by making charitable donations.

Here’s what you can deduct:

Charitable contributions: You can deduct cash donations to qualified charities up to 60% of your adjusted gross income.

How does it work? To qualify for this deduction, you must itemize your deductions on Schedule A of Form 1040.

25. Employee’s Pay Deduction: Hiring Help, Saving Money

If you hire employees, you can deduct the cost of their salary and wages on your taxes.

Here’s what you can deduct:

Employee wages: You can deduct the wages you pay to your employees.

How does it work? Make sure that your employees are paid a reasonable amount for their services.

26. Business Insurance Deduction: Protect Yourself, Protect Your Wallet

Business insurance is essential for protecting your business from unexpected events. And thankfully, most business insurance premiums are deductible.

Here’s what you can deduct:

Fire, theft, or flood insurance: You can deduct the cost of premiums for insurance that protects your business from these types of events.
Business liability insurance: You can deduct the cost of premiums for insurance that protects you from lawsuits.
Workers’ compensation insurance: You can deduct the cost of premiums for insurance that protects your business from workplace injuries.
Malpractice insurance: You can deduct the cost of premiums for malpractice insurance if you are in a profession that requires it, such as medicine or law.
Vehicle insurance: If you use a car for business, you can deduct the cost of insurance premiums for that vehicle.
Disability insurance: You can deduct the cost of premiums for insurance that will provide income if you are unable to work due to a disability.
Life insurance: You can deduct the cost of life insurance premiums for employees if you are a business owner.

How does it work? Make sure that the insurance premiums are paid for a business purpose.

27. Interest Expense Deduction: Get Your Finances in Order

Interest expenses, such as interest on business loans, credit card debt, or mortgage debt, are generally deductible as long as the debt is used for a business purpose.

Here’s what you can deduct:

Interest on business loans: This includes loans used to purchase equipment, inventory, or real estate for your business.
Interest on credit cards: You can deduct interest on credit cards used for business expenses.
Interest on mortgages: You can deduct interest on business mortgages, but you cannot deduct interest on mortgages on your primary residence.

28. Taxes and License Fees Deduction: Stay Compliant, Save Money

Taxes and license fees can add up quickly. Fortunately, you can deduct many of these expenses on your taxes.

Here’s what you can deduct:

State income taxes: You can deduct the state income taxes paid on your business income.
Real estate taxes: You can deduct real estate taxes paid on property used for your business.
Sales taxes: If you collect sales taxes from customers, you can deduct the sales taxes you paid on business purchases.
Property taxes: You can deduct property taxes paid on your business property.
Fuel taxes: You can deduct fuel taxes paid on gasoline, diesel, and other fuels used in your business.
License fees: You can deduct license fees paid to operate your business.

How does it work? Make sure that the taxes and license fees are directly related to your business.

29. Supplies and Materials Deduction: The Cost of Doing Business

Any supplies and materials that you use to run your business are generally deductible, whether you’re using them for manufacturing, selling, or everyday operations.

Here’s what you can deduct:

Office supplies: This includes pens, paper, envelopes, staples, ink cartridges, and other similar office supplies.
Manufacturing supplies: If you are involved in manufacturing, you can deduct the cost of raw materials, packaging supplies, and other materials used in production.
Other business supplies: This includes materials like cleaning supplies, promotional materials, and other supplies specific to your industry.

30. Bad Debts Deduction: When You're Owed Money

If a customer owes you money and doesn't pay, you can deduct that amount as a bad debt on your taxes.

Here’s what you can deduct:

Bad debt: You can deduct a business bad debt as a business expense.

How does it work? You must have included the amount of the bad debt in your gross income for the current or a previous tax year.

31. Depreciation and Section 179 Expense Deduction: Deduction for Long-Lived Assets

If you purchase a long-lived asset for your business, like equipment or furniture, you can generally deduct the cost of that asset over time through a process called depreciation.

Here’s what you can deduct:

Bonus depreciation: This allows you to deduct a significant portion of the cost of a new asset in the year you purchase it. For 2024, you can deduct 60% of the cost of qualified assets purchased in 2024.
Section 179 expense: This deduction allows you to deduct the full cost of an asset in the year you purchase it. The deduction limit for 2024 is $1,220,000.

How does it work? You can deduct depreciation on Schedule C. For bonus depreciation, you’ll need to use Form 4562.

32. Charitable Gifts Deduction: Give Back to Your Community

As a self-employed person, you may want to give back to your community by making charitable donations.

Here’s what you can deduct:

Charitable contributions: You can deduct cash donations to qualified charities up to 60% of your adjusted gross income.

How does it work? To qualify for this deduction, you must itemize your deductions on Schedule A of Form 1040.

33. Employee’s Pay Deduction: Hiring Help, Saving Money

If you hire employees, you can deduct the cost of their salary and wages on your taxes.

Here’s what you can deduct:

Employee wages: You can deduct the wages you pay to your employees.

How does it work? Make sure that your employees are paid a reasonable amount for their services.

34. Business Insurance Deduction: Protect Yourself, Protect Your Wallet

Business insurance is essential for protecting your business from unexpected events. And thankfully, most business insurance premiums are deductible.

Here’s what you can deduct:

Fire, theft, or flood insurance: You can deduct the cost of premiums for insurance that protects your business from these types of events.
Business liability insurance: You can deduct the cost of premiums for insurance that protects you from lawsuits.
Workers’ compensation insurance: You can deduct the cost of premiums for insurance that protects your business from workplace injuries.
Malpractice insurance: You can deduct the cost of premiums for malpractice insurance if you are in a profession that requires it, such as medicine or law.
Vehicle insurance: If you use a car for business, you can deduct the cost of insurance premiums for that vehicle.
Disability insurance: You can deduct the cost of premiums for insurance that will provide income if you are unable to work due to a disability.
Life insurance: You can deduct the cost of life insurance premiums for employees if you are a business owner.

How does it work? Make sure that the insurance premiums are paid for a business purpose.

35. Interest Expense Deduction: Get Your Finances in Order

Interest expenses, such as interest on business loans, credit card debt, or mortgage debt, are generally deductible as long as the debt is used for a business purpose.

Here’s what you can deduct:

Interest on business loans: This includes loans used to purchase equipment, inventory, or real estate for your business.
Interest on credit cards: You can deduct interest on credit cards used for business expenses.
Interest on mortgages: You can deduct interest on business mortgages, but you cannot deduct interest on mortgages on your primary residence.

36. Taxes and License Fees Deduction: Stay Compliant, Save Money

Taxes and license fees can add up quickly. Fortunately, you can deduct many of these expenses on your taxes.

Here’s what you can deduct:

State income taxes: You can deduct the state income taxes paid on your business income.
Real estate taxes: You can deduct real estate taxes paid on property used for your business.
Sales taxes: If you collect sales taxes from customers, you can deduct the sales taxes you paid on business purchases.
Property taxes: You can deduct property taxes paid on your business property.
Fuel taxes: You can deduct fuel taxes paid on gasoline, diesel, and other fuels used in your business.
License fees: You can deduct license fees paid to operate your business.

How does it work? Make sure that the taxes and license fees are directly related to your business.

37. Supplies and Materials Deduction: The Cost of Doing Business

Any supplies and materials that you use to run your business are generally deductible, whether you’re using them for manufacturing, selling, or everyday operations.

Here’s what you can deduct:

Office supplies: This includes pens, paper, envelopes, staples, ink cartridges, and other similar office supplies.
Manufacturing supplies: If you are involved in manufacturing, you can deduct the cost of raw materials, packaging supplies, and other materials used in production.
Other business supplies: This includes materials like cleaning supplies, promotional materials, and other supplies specific to your industry.

38. Bad Debts Deduction: When You're Owed Money

If a customer owes you money and doesn't pay, you can deduct that amount as a bad debt on your taxes.

Here’s what you can deduct:

Bad debt: You can deduct a business bad debt as a business expense.

How does it work? You must have included the amount of the bad debt in your gross income for the current or a previous tax year.

39. Depreciation and Section 179 Expense Deduction: Deduction for Long-Lived Assets

If you purchase a long-lived asset for your business, like equipment or furniture, you can generally deduct the cost of that asset over time through a process called depreciation.

Here’s what you can deduct:

Bonus depreciation: This allows you to deduct a significant portion of the cost of a new asset in the year you purchase it. For 2024, you can deduct 60% of the cost of qualified assets purchased in 2024.
Section 179 expense: This deduction allows you to deduct the full cost of an asset in the year you purchase it. The deduction limit for 2024 is $1,220,000.

How does it work? You can deduct depreciation on Schedule C. For bonus depreciation, you’ll need to use Form 4562.

40. Charitable Gifts Deduction: Give Back to Your Community

As a self-employed person, you may want to give back to your community by making charitable donations.

Here’s what you can deduct:

Charitable contributions: You can deduct cash donations to qualified charities up to 60% of your adjusted gross income.

How does it work? To qualify for this deduction, you must itemize your deductions on Schedule A of Form 1040.

41. Employee’s Pay Deduction: Hiring Help, Saving Money

If you hire employees, you can deduct the cost of their salary and wages on your taxes.

Here’s what you can deduct:

Employee wages: You can deduct the wages you pay to your employees.

How does it work? Make sure that your employees are paid a reasonable amount for their services.

42. Business Insurance Deduction: Protect Yourself, Protect Your Wallet

Business insurance is essential for protecting your business from unexpected events. And thankfully, most business insurance premiums are deductible.

Here’s what you can deduct:

Fire, theft, or flood insurance: You can deduct the cost of premiums for insurance that protects your business from these types of events.
Business liability insurance: You can deduct the cost of premiums for insurance that protects you from lawsuits.
Workers’ compensation insurance: You can deduct the cost of premiums for insurance that protects your business from workplace injuries.
Malpractice insurance: You can deduct the cost of premiums for malpractice insurance if you are in a profession that requires it, such as medicine or law.
Vehicle insurance: If you use a car for business, you can deduct the cost of insurance premiums for that vehicle.
Disability insurance: You can deduct the cost of premiums for insurance that will provide income if you are unable to work due to a disability.
Life insurance: You can deduct the cost of life insurance premiums for employees if you are a business owner.

How does it work? Make sure that the insurance premiums are paid for a business purpose.

43. Interest Expense Deduction: Get Your Finances in Order

Interest expenses, such as interest on business loans, credit card debt, or mortgage debt, are generally deductible as long as the debt is used for a business purpose.

Here’s what you can deduct:

Interest on business loans: This includes loans used to purchase equipment, inventory, or real estate for your business.
Interest on credit cards: You can deduct interest on credit cards used for business expenses.
Interest on mortgages: You can deduct interest on business mortgages, but you cannot deduct interest on mortgages on your primary residence.

44. Taxes and License Fees Deduction: Stay Compliant, Save Money

Taxes and license fees can add up quickly. Fortunately, you can deduct many of these expenses on your taxes.

Here’s what you can deduct:

State income taxes: You can deduct the state income taxes paid on your business income.
Real estate taxes: You can deduct real estate taxes paid on property used for your business.
Sales taxes: If you collect sales taxes from customers, you can deduct the sales taxes you paid on business purchases.
Property taxes: You can deduct property taxes paid on your business property.
Fuel taxes: You can deduct fuel taxes paid on gasoline, diesel, and other fuels

Top Tax Deduction Tips for Self-Employed Workers

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