As an independent contractor, you qualify to deduct 100% of business expenses from your taxable income. When you take into consideration all your business expenses, this can result in quite a bit of savings. The list is lengthy, so rather than bore you with long paragraphs explaining the majority of valid deductions, let’s get down to the nitty gritty and provide you a list:
- Professional association dues
- Retirement plan contributions
- Licensing fees
- Business insurance
- Malpractice insurance
- Health insurance premiums
- Medical journals
- Work-related clothing
- Stethoscope or similar equipment
- Cellphone
- Business-related meals
- Continuing medical education (includes tuition, airfare, hotel, rental car, meals, etc.)
Deductible home office expenses include your desk, fax/copy machine or printer, computer, file cabinets, lamps, chair and general office supplies. You can also deduct the business-related portion of expenditures on mortgage interest and real estate taxes, rent, home security, internet usage, home depreciation, utilities, phone service and homeowners insurance.
Deductible travel expenses include work-related gas, maintenance, insurance, depreciation and lease payments. As an alternative, you can take the standard mileage deduction (67 cents per mile for 2024).
Be sure to work with your CPA to maximize your deductions and complete and file your schedule C. And don’t forget about other deductions like the 20% pass-through deduction more formally known as the “Qualified Business Income” (QBI) deduction. The QBI deduction can save you a lot of money! You can find more details here.
This communication is strictly intended for individuals residing in the sates of of AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WI, WV, and WY. No offers may be made or accepted from any resident outside the specific states referenced.
The information being provided is strictly as a courtesy. When you link to any of these web-sites provided herein, Financial Designs, Inc. makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information and programs made available through this site.
Financial Designs, Inc.
11225 College Blvd., Suite 300
Overland Park, KS 66210
Toll free: 888-898-3627 (voice call only)
Local: 913-451-4747 (voice call only)
Fax: 913-451-8191
Contact us today