Ten Independent Contractor Tax Write-Offs

by Kelley Amstutz

Working as an Independent Contractor, the importance of saving money, and staying frugal is imperative. But, sometimes you have to spend a little money in order to make a little money. When you properly deduct the expenses that are needed to keep your business up and running successfully, you will minimize your tax bill, and increase the money you find in your bank account.

When figuring out whether an expense is a tax deduction, it is also important to remember that all things tax related are based on your facts and circumstances. All deductible expenses have to be for your business. If you use something for your business and in your personal life, you have to deduct a percentage of what is used for business purpose, and you have to maintain records to reflect these deductions.

Before you begin, you will have to ask yourself if what you are considering a tax deduction follows the IRS guidelines, and whether or not the expense is “ordinary and necessary.” An ordinary expense is common and accepted as a norm in your field or business. A necessary expense is one that is considered both helpful and appropriate for your field of business. Please note that an expense does not need to be vital in order to qualify as necessary by the IRS.

Please reference the informative PDF file from the IRS for the details on Business Use for your Home, here: https://www.irs.gov/pub/irs-pdf/p587.pdf.

Since we have defined what considering factors are needed before you determine what you can deduct, below you will find ten (10) tax write-offs for Independent Contractors to take advantage of:

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