Ed Lloyd points out a few tax benefits that self-employed people in the USA enjoy:
Ed Lloyd & Associates PLLC are a Certified Public Accountant and provide various accounting and tax services to organizations and individuals in Charlotte. Their experts point out that many people have now started giving up their jobs and moving to freelancing and other self-employment methods. These people have a completely different set of issues when it comes to paying taxes. But they also enjoy some tax benefits which their counterparts in full-time jobs would not be eligible for.
Health Insurance –
People who are self-employed are eligible for tax deductions on the amount they might have paid for themselves and their family members. But this is not allowed if he is part of a subsidized health plan that might have been provided by the spouse’s employer.
Home Office –
Edward Lloyd points out that in case a person works from home and uses a part of the home for his/her work purpose, then he/she is eligible to deduct a portion of the housing cost that is being incurred annually. These deductions include the rent or mortgage, insurance and the charges that are spent on utilities.
If a self-employed person uses a part of the house he lives in for the purpose of his work and then he is eligible for deduction on a part of the utility costs that he spends for his work. On the other hand, if the person has rented or uses some other place for his work, then the whole costs incurred on utilities are fully eligible for tax deductions.
Supplies for Office Use –
A self-employed person is also eligible for deductions on the amount he spends to acquire office supplies. This includes chairs, desk, printers, filing cabinets etc.
Thus, according to the experts at Ed Lloyd & Associates self-employed people can save a lot of money by understanding the benefits that have been given to them under the income tax law.
Want to know about the tax benefits that are enjoyed by senior citizens? Read – Ed Lloyd & Associates’ List of Tax Benefits for Senior Citizens in USA