Traverse City Tax Preparation Examiner Frank Ellis has published tax deduction tips that can be used by self-employed individuals.
Traverse City, MI -- (SBWIRE) -- 06/19/2015 -- Frank Ellis, a tax specialist and published author, has posted an article on Examiner.com that reveals various self-employment tax deductions available. He explains that H&R Block works with self-employed individuals and gives tips such as deducting a home office. Fears of deducting a home office in regards to audits are dispelled. The author says any space used for business is appropriate and does not have to be an entire room.
Also mentioned is the Simplified Home Office Deduction to ease record-keeping. It allows a flat deduction of $5 per square foot, up to 300 square feet, states Ellis. Taxpayers can also deduct a portion of their rent, insurance, mortgage, and utilities.
Other deductions explained include those for equipment and supplies. This includes a business computer and anything used solely for business purposes. Auto costs, or at least a portion of them, can be deducted as well, including mileage. Allowances and limitations are explained further in the article. The author reveals self-employed taxpayers can deduct eligible meals, lodging, and business-related travel expenses.
Retirement plan contributions are explained, along with the available types for the self-employed. There are a wide variety, the author states. A few options are explained along with their benefits.
Ellis also says, by paying one's children to do simple tasks related to the business, they can reduce their tax liability via a deduction. He also says taxpayers won't have to worry about social security tax if they are under 17 and the business has not been incorporated. Health insurance deductions for self-employed individuals are touched on as well.
Finally, the author mentions the perks of filing with H&R Block Online.
To learn more about self-employment tax deductions, read the article at
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
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945 East 8th Street Suite A
Traverse City, Michigan 49686