From The Fiscal Times, Janna Herron offers her tips for tax deductions for freelancers and independent contractors. Janna writes:
1. Startup costs
Fledgling businesses and their owners can deduct some costs such as legal fees, marketing and advertising expenses and any bank fees.2. Loan interest
Any interest on a business loan is a tax-deductible expense. Similarly, any credit card interest you incur for business purchases is deductible.3. Publications and subscriptions
You can deduct the cost of trade, industry or specialized magazines, journals and books directly related to your business.4. Social Security and Medicare taxes
Self-employed workers can write off half of the 15.3-percent they pay in Social Security and Medicare taxes. Companies usually pay this tax for their employees.5. Car expenses
Self-employed workers can calculate the percentage of driving done for business all year and deduct the corresponding percentage of the total cost of operating the car (gas, oil changes, registration fees, repairs and car insurance). If you used your car for business 10 percent of the time, you can deduct 10 percent of your total car expenses for the year.Read the full story at 13 Tax Tips for Self-Employed Workers in 2016
