Self-Employment Tax Deductions - Optimize Your Tax Return

In order to minimize the taxes you owe, you will want to read more about these 9 self-employment tax deductions useful for optimizing your tax return. 

1. Defer Income and Accelerate Self-Employment Tax Deductions to Avoid Higher Tax Bracket

Take advantage of last-minute self-employment tax deductions before year end and defer income until next year.

2. Use the Self-Employment Tax Deduction

– As a Form W-2 employee, your employer pays their equal portion of payroll taxes on wages or salaries paid to you. However, when you are self-employed and you are the employer, it is your responsibility to pay both portions.

3. Contribute to an Individual Retirement Plan (IRA)

Tax-advantaged retirement accounts can lower your taxable income and grow funds in a tax-efficient manner.

4. Contribute to a Health Savings Account (HSA)

If you use a qualifying high deductible health plan to cover yourself or your family, you will have access to this triple tax-advantaged account.

5. Take Advantage of Educational Tax Credit

These credits can be useful for enhancing your hard skills and growing your business while lowering the amount of taxes you owe.

6. Home Office Tax Deduction

While the most complicated self-employment tax deduction on this list, this can be a major tax deduction to consider each year.

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