As an independent 1099 contract worker, paying off the taxes can be quite overwhelming and can haunt you in your deepest nightmares. Working in a firm as an employee is quite easy as a small tax deduction is made from your paychecks. But when it comes to being an owner of a business, paying the taxes can in all be a roller coaster ride.
The good news is that the self-employed can save some of their hard-earned money by claiming tax deductions. However, only a few are aware of the same and end up oozing out thousands of dollars on the table owing to their negligence and lack of knowledge about tax deductions.
Read on to find out the categories for which you can claim a deduction:
Being self-employed has multiple options for a 1099 contract worker to take up. And if at all your business does not require big commercial space and you consider doing it from home, then there is some piece of good news for you.
You can also claim for your home office expenses if you are using a part of your house for running your business. You can consider using this calculate 1099 taxes to calculate the office deductions using the standard or simplified method.
Phone bill and Internet
Irrespective of whether you wish to claim home office deductions, you can always look forward to opting for internet, fax, and phone deductions. But you need to take care that the deductions are made solely on the expenses that you have directly spent on your business.
Just in case if you have a single phone that is used for business and personal use both, you cannot consider deducting the whole monthly bill, on the other hand, if you have another phone that you solely use for business, then you can claim for a 100% deduction.
When you use your cars and vehicles for business purposes, you become eligible for a tax deduction. But to claim the same, you need to keep a record of the mileage, date, purpose of travel, etc. to get things in black and white.
To pen down the actual expenses, you need to calculate the total run that you had exclusively used for business purposes, which is also inclusive of the oil change, gas, repairs, insurance, etc.
Rent and lease
Leasing and renting a property for running your business can also be submitted for tax deduction benefits. Not just the property rent, if you have leased out cars or any other equipment to run your business, then these expenses can also be included in the deductions.
Restoration and Maintenance costs
If you have spent on the repair and maintenance of your office property or machines, then you can also claim the same for tax deductions. May it be for repairing a photocopier or repurposing your offices, all these expenditures can be included in repair and maintenance deductions.
If you are paying premiums in the form of theft insurance, business insurance, compensation insurance, and similar insurance premiums, you can consider listing it down in the deductibles.
These are not all; there are various other deductions that you can claim as a 1099 worker. You can consider logging in to https://www.keepertax.com/tax-bill-calculator to find out the most common tax breaks so that you can benefit from your tax savings.