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While some overlap with those available to regular workers, self-employed individuals also have their own unique deductions.
Heres a look at some of themost generous tax deductions that are available to the self-employed.
Retirement Plan Contributions
Retirement plan contributions are generally deductible whether youre a self-employed worker or not.
But self-employed individuals have access to plans with higher contribution limits, making them potentially more valuable.
Your employer is responsible for paying the other 7.65%.
That amounts to a whopping 15.3% of your income.
Meals can be deducted up to a 50% limit, although there arestrict qualifying requirements.
Otherwise, youll have to deduct those costs over time via the depreciation deduction.
Auto insurance for vehicles used for business can also be deducted.
Business Interest
Businesses can deduct interest on loans they take out, and so can self-employed workers.
These must be for business use and not personal use, however.
But interest on SBA 7(a) loans does qualify.
Caitlyn Moorheadcontributed to the reporting for this article.
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