As a self-employed person, you probably watched the development of the Tax Cuts and Jobs Act with some trepidation. The tax code is not often kind to the self-employed, nor are most of the changes to the code.
However, the new tax law retains most self-employment deductions and offers a few new forms of relief – even if you don’t have billions of dollars parked offshore waiting to be repatriated. Consider these 15 tax deductions that can help you pump more of your proceeds into your business instead of the public coffers.
1. Self-Employment Tax Deduction – Unfortunately, in the eyes of the IRS, you are both an employer and an employee. Thus, you are responsible for both the employer and employee tax contributions to Medicare and Social Security. Fortunately, 50% of your employment tax payment (effectively your “employer” contribution) is tax deductible.
2. Qualified Business Income (QBI) Deduction – To level the playing…