Working as an independent contractor offers many benefits. For starters, it typically offers much greater freedom than working a traditional 9-5 job for a regular employer.
It can also offer unique benefits when it comes to filing your taxes. The problem is that for many independent contractors, it also makes tax time more difficult. One of the best things you can do is learn as much as possible about filing taxes as an independent contractor.
One thing you should certainly know about your taxes is that as an independent contractor, you can deduct thousands of dollars worth of expenses. This includes vehicle expenses associated with work, office equipment, home office expenses, Internet, phone service, and anything else that you use for your business. If you have a home office, you can even deduct a portion of your rent and utilities when taxes are due.
Learning as much as you can about taxes is essential when you are looking to take advantage of all of the deductions available to you. Keeping a list of all receipts for business meals, travel logs, office expenses, and the like can help you save thousands at tax time. Schedule C instructions can help you understand what business deductions you can claim, and picking up a book on the matter can be very helpful.
When you understand all of the deductions for independent contractors, taxes can be much easier to file and much less costly. Take the time to learn what you can claim. It can pay off in a big way.