Self-Employed The Unexpected Benefit of Self-Employment: Tax Savings Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Steve Strauss Published Jun 20, 2024 2 min read Reviewed by Jotika Teli, CPA Lena Hanna, CPA Being self-employed provides one with freedom, flexibility, creativity, contentment, and also the chance to make more money. Being your own boss is definitely a bonus! However, there is one more very important benefit that comes with self-employment, and it’s an unexpected one: more tax savings. The unexpected benefit of becoming self-employed is business expenses are now tax deductible. This means that when you’re self-employed, you can deduct things like auto expenses and marketing costs, but it also means that other things that could not be written off as an employee can also now be written-off. This includes items such as: Professional licenses, association dues, periodical subscriptions: If you work for a professional service company like a law firm, construction company, architect firm, or accounting firm, you may have to pay state and local association or licensing dues. As an employee, these expenses are not deductible on your tax return. But if you are self-employed and operating your own firm, you can fully deduct these expenses. Trainings: Self-employment requires you to stay current, up-to-date, and knowledgeable about your industry. The cost of trainings (and associated travel expenses), webinars, and the like are all legitimate business expenses. As long as the training is strictly for business purposes and not extravagant, you can fully deduct these expenses. Healthcare: Most self-employed taxpayers can deduct health insurance premiums, including age-based premiums for long-term care coverage. Write-offs are available whether or not you itemize, if you meet the requirements. Home Office: If you’re self-employed and work at home, you may be eligible for the home office tax deductions. If you are eligible for home office deductions, the tax savings can be well worth the additional work required to qualify. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started You know your small business—we know business taxes. Our self-employed and business tax experts will ensure you get every tax break with 100% accuracy, guaranteed. Start for free 100% free to start. Pay only when you file. Previous Post How to Report Self-Employment Income When You Have Multiple Side… Next Post Tax Credits vs. Tax Deductions: What Are the Differences? Written by Steve Strauss More from Steve Strauss One response to “The Unexpected Benefit of Self-Employment: Tax Savings” What about being self employed and filing jointly with your spouse, while retirees and working part time? Reply Leave a ReplyCancel reply Browse Related Articles Tax Help How to File a Business Tax Extension: Deadlines, Forms, and Penalties Tax Tips The White Lotus Tax Lessons: Navigating Gift Taxes, Lump Sum Payouts, Hush Money, and the IRS Tax Questions What Day Are Taxes Due? April 15! How to File for a Tax Extension or Pay Taxes Online Tax Questions What Happens If You File Your Taxes Wrong? Late Filing Penalties, Interest, and More Tax Questions What’s Tax Deductible? A Guide to Mortgage Interest, Long-Term Care, Funeral Expenses, Student Loans, and Roth IRA Contributions Tax Questions Is it Better to Get Your Taxes Done or Do Them Yourself? (And Other Tax Questions Answered) Tax Forms What is a 1099-K Form? How to Report Payments on Your Tax Return (2024) Tax Forms What is a 1099 Form? A Guide to Understanding Your Tax Obligations Income Tax by State Wisconsin State Income Tax in 2025: A Guide Income Tax by State West Virginia State Income Tax in 2025: A Guide
What about being self employed and filing jointly with your spouse, while retirees and working part time? Reply