If you work for yourself as an independent contractor, you may already be aware that you can write-off your home off if you only use it for business and you can deduct supplies and materials. However, that are lots of other expenses that you can deduct from your taxes as an independent contractor that you may not be aware of.
#1 Occupational Operating Expenses
You can write off expenses that are specific to your occupation and job as an independent contractor. For example, if you work as a copy editor, you could write off the cost of advertising your copy editor service. Or if you work making custom items to sell on Etsy, you could write off all the money you spend on your advertising your products on other platforms. If you run a personal website to advertise your services or product, you could also write off an and all web-hosting fees as well.
#2 Entertaining for Business
If you ever have to court or entertain clients, you can deduct the expense of entertaining the clients. You can deduct half of the expenses associated with each entertainment event. You can use this deduction when you take clients out for business meetings, and business was discussed and conducted during the meeting. You can use this deduction when you host or take clients to special events as well, such as sporting events. Just make sure that there is a business angle to your entertainment.
#3 Travel for Business
If you take a trip for business, you can write off up to half of the expenses associated with the trip. That includes either transportation, such as airfare or gas costs if you drive yourself. You can also write off your hotel expenses and meals.
Your entire trip doesn't have to be focused on business either; you can add some days to your trip for having fun. You just need to make sure that you don't spend more days there for personal reasons versus business reasons. As long as you spend as many days on your trip for business or more days than you spend on pleasure, you can write all travel and lodging expenses associated with the trip.
#4 Cleaning Expenses
If you pay a service to clean your home office space or the space you rent to run your business out of, that can be deducted. This is considered a business related expense and isn't seen as a luxury, although it may feel like one to you. Just keep track of the expenses and be sure to get receipts for all of your payments.
There are lots of things you can write off as an independent contractor. Try to find a tax advisory service that specializes in working with independent contractors who can help you find as many legal ways to reduce your income via business expenses as possible.