Mastering Deductions: Claim What’s Rightfully Yours
One of the biggest advantages of being self-employed is the opportunity to claim a wide range of tax deductions. But let’s be real—if you’re not proactive, it’s easy to leave money on the table. **Deductions** aren’t just about saving money; they’re about recognizing the true costs of running your business. Whether you’re a freelance designer or a yoga instructor, every expense that supports your work could potentially lower your tax bill.
- Start by keeping meticulous records of your expenses. Apps like QuickBooks or Wave can help you track receipts, categorize expenses, and even sync with your bank account.
- Think beyond the obvious: home office expenses, internet bills, and software subscriptions are just the tip of the iceberg. If you drive for work, mileage or car-related costs are deductible, too.
- However, the IRS has specific rules, so ensure you’re tracking these expenses accurately1.
Another savvy move is to understand depreciation. Big-ticket items like a new laptop or camera for your business may not be fully deductible in the year you make the purchase. Instead, they’re depreciated over time. Knowing how to claim depreciation—or working with an accountant who does—can maximize your savings. Remember, the goal isn’t to cut corners but to claim everything you’re entitled to under the law.