Various other tax deductions are available for Self-employed taxpayers, like business insurance, travel charges, internet charges, and many others. Apart from that, various leverages can be utilized by any self-employed person. These leverages vary based on the nature of their business and the amount of tax that businesses have to pay. Some of these leverages, as per the taxation policies, are listed below:
The estimated taxes comprises Social Security and Medicare taxes. The Medicare taxes that exceeds over 7.5% of the total income comes under the category of deductible taxes.
You can put your income in the Health saving account in order to increase your tax deduction.
Self-employed taxpayers need to keep track of all their business-related products, which can be further utilized for tax deductions.
You can also contribute a part of your income to retirement plans in order to lower the taxable amount.