Are you an independent contractor looking for help with your taxes? If so, you may be confused about what tax deductions are available for you. Many people are under the assumption that as a 1099 worker, they are not eligible for many tax deductions, but this is not the case.
There are many tax deductions available for 1099 workers.
What is a 1099 worker?
If you are an independent contractor, then you will receive an IRS (Internal Revenue Services) form 1099 at the end of the year, and you generally must pay your own taxes. But even if you run a business, you may still be considered an independent contractor.
In some cases, you may be a sole proprietor, which means that you are responsible for filing your own taxes. But even if you are an employee of your own company, you can still work for yourself and qualify as a 1099 worker. For example, maybe you are in charge of supervising three people on a big project, and you make the business decisions on your own. You may also be an independent contractor if you work for the company, but you work on a contract basis.
Once you file your taxes, you will have to decide if you are an employee, a sole proprietor, or a 1099 (independent contractor) worker. If you fall under any of these categories, you will need to take certain deductions on your taxes.
What tax deductions are available for 1099 workers?
If you work for yourself as a 1099 worker, then there are certain tax deductions you can take. As a 1099 worker, you cannot deduct many expenses related to owning a business, such as advertising or supplies.
If you work as an independent contractor, you can deduct the cost of supplies, the cost of vehicles purchased for business use, and the cost of travel.
If you drive for work, then you can deduct the cost of operating your vehicles such as mileage and fuel.
If you work from home, then you can deduct the cost of your supplies, the cost of a phone line, and the cost of utilities.
If you travel for business, then you can deduct the cost of travel, meals, and entertainment.
Conclusion
If you are a 1099 worker, then you may have a hard time filing your taxes on your own. It can be a very confusing process, especially if you don’t know the rules. Fortunately, you don’t have to do it alone. Abbo Tax CPA is here to help. We specialize in 1099 tax preparation, and we can help you make sense of the paperwork and figure out your deductions.
If you need assistance with filing your taxes, just give us a call or fill out our contact form. You’ll be glad you did!
