When you’re self-employed, it’s essential to keep track of all your business expenses. This can help reduce your taxable income. However, there are some deductible expenses that many gig workers overlook. We’ve rounded up several of them – keep reading to learn more!
- Mileage
One of the most obvious deductible expenses for many gig workers is mileage. If you’re driving your personal vehicle, you can deduct the cost of gas from your taxes. Be sure to keep track of your mileage each month to maximize your savings. Try out Cheqbook free for 30 days to see how easy it can be!
- Self-employment tax
Many gig workers are finding themselves responsible for self-employment tax for the first time, but you may not realize that you can claim 50% of this on your income taxes. You can learn more about self-employment tax here.
- Phone
If you use your cell phone for work, you may be able to claim the costs of your taxes. Keep in mind that if you also use your phone for personal purposes, you can only claim a portion of these costs.
- Maintenance and Repairs
Another deductible expense is maintenance and repairs. If you’re using your personal vehicle for work, you can deduct any expenses related to keeping it in good working condition. This includes things like oil changes, new tires, and brake pads.
- Health insurance premiums
If you’re self-employed, you may be able to deduct the cost of your health insurance premiums on your taxes. This includes both individual and family health insurance plans.
- Car Insurance
If you’re using your personal vehicle for work, you can deduct the cost of your car insurance from your taxes. Be sure to keep track of how much you’re paying each month so that you can deduct the proper amount from your taxes.
- Retirement plan contributions
If you make contributions to a retirement plan, such as a 401(k) or an IRA, you may be able to deduct those contributions from your taxes.
- Parking Fees and Tolls
Drivers sometimes have to pay parking fees or tolls. If you’re using your personal vehicle, you can deduct the cost of any that you pay while working. Be sure to keep track of how much you’re spending on tolls and parking so that you can deduct the proper amount from your taxes. Cheqbook can simplify the process and you can try it out for free!
Keeping track of your finances can be intimidating but here at Cheqbook, we aim to make it as easy and stress-free as possible. That’s why we offer a free trial – no credit card required. Give us a try today and see how simple and effortless managing your finances can be.