Tax time can be an incredibly difficult time for people who are self employed. The key is to set money aside for your taxes every time you get paid, but that can be especially hard to do if you need to pay for your bills, rent and groceries. Luckily you have JDKatz Attorneys at Law on your side. Our Maryland tax attorney has come up with this list of the top expenses that are tax deductible for your business:
- Home Office- Do you have a work-space in your home that you conduct your business in? Regardless of whether you own your home or you are renting it, you can deduct a percentage of your mortgage or your rent on your taxes.You can also deduct a percentage of your monthly utility bill, homeowners insurance and property taxes.
- Health Insurance- If you are self-employed, you aren’t able to get insurance through your spouse’s plan, and you pay for your own health insurance, you may be able to deduct the premiums from your health and dental insurance.
- Phone, Fax and Internet- Even if you decide not to deduct your home office, you can still deduct your internet, fax and business phone. Be careful with this, as you should only deduct your expenses that are exclusively for business. For example, if you have one phone that you use for business 50% of the time, then you can deduct 50% of your bill. However, if you have a separate phone that you only use for business, then you can deduct all of the bill.
For more ideas on business expenses that can be deducted from your taxes, please stay tuned for our next blog.