Automobiles depreciate over time, and there are stringent rules about how depreciation affects allowed deductions and additional forms to use in certain situations. Independent contractors take the business portion of their deductions on Schedule C and the remaining portion on Schedule A. Health Insurance Deduction You may be able to deduct up to 60 percent of your health insurance premiums if you are self-employed. The deduction only applies if you are not eligible for benefits through an employer plan or a spouse's plan. You can also deduct a portion of your dependents' premiums. Calculate whether you are eligible on your Schedule C. Read the Schedule C instructions and consult with a tax professional if you have any questions or concerns about making estimated quarterly tax payments or taking any of these deductions.
Many situations require additional forms.
Since you are no longer employed as a full-time employee, you won't receive other benefits, such as health insurance and disability coverage.