What are the Deductions Available to Only Self Employed

What are the Deductions Available to Only Self Employed?

There are certain tax deductions that are available to the self-employed only. Below is the list of common tax deductions that are available to the self-employed but not to taxpayers in general.

 

Self-employment taxes

Self-employed taxpayers are allowed to deduct 50% of the self-employment taxes Shone on his or her tax return.

 

Premiums paid for health insurance

Self-employed taxpayers are allowed to deduct the premiums that they paid for health insurance but not to exceed their earnings from self-employment. If self-employed taxpayer will qualify to deduct the premiums if he or she is not eligible for an employer’s health plan coverage.

 

Payments into some retirement plans such as some IRAs, profit sharing plans, and 401(k)s

A self-employed taxpayer can deduct the amount of contributions to a self-employed retirement plan such as a SEP IRA, a profit sharing plan and a 401(k).