As an independent contractor, you’re focused on making money. However, because you’re classified as a self-employed person by the IRS, you also have a higher tax liability. That’s where tax deductions come in.
Tax deductions lower your taxable income, which translates into keeping more of your earnings at tax time. That’s why it’s crucial to know which business expenses can be deducted.
That’s why we created this guide to help you write off expenses related to coronavirus, which you may have not known are eligible for deduction.
Note: Unless your small business happens to be an accounting firm, it’s always beneficial to consult a tax pro who can help you accurately prepare your filing and maximize your tax deductions.
Before we dive into the deductions, it’s important to note that to deduct a business expense, you must follow best practices. Theses include:
If you have been keeping your car extra clean to keep your passengers safe from COVID in 2021, then it’s tax-deductible. Possible write-offs include:
If you have been keeping you and your passengers safe by using masks, test kits, etc., then it’s tax-deductible. Possible write-offs include:
There are several COVID-related tax deductions and credits available to self-employed people. We recommend consulting with a tax pro to see if there are any of these programs that you’re eligible to claim.
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