Tax Deductions For the Self-Employed and other Job Related Deductions

If you own a small business or home based business, you can deduct just about all of your business expenses. Here are some to keep in mind:

• Office supplies
• Postage
• Shipping supplies
• Tools & materials
• Work uniforms (not suitable for every day wear)
• Safety equipment (hardhats, safety glasses, etc.)
• Advertising/promotional costs
• Computer & internet
• Cell phone (used primarily for business) And long distance business calls, and a separate business line at your home.
• Business dinners & entertainment costs (up to 50%, and you must specify purpose of the dinner and what clients were in attendance)
• If you have a home office which takes up 10% of your home and is used primarily for you business, you can deduct 10% of your electricity & utility bills.
• Books, Magazines, and Journals pertaining to your business.
• Education/training courses relevant to your buisiness.
• Liscensing & dues paid to states, your chamber of commerce, etc.
• Gasoline & vehicle maintenance, if you use your vehicle for your business.
• Business trip costs.
• Business gifts up to $25 per client.
• Office space rent
• Insurance for business, health insurance premiums, and auto insurance (for business owners who use their car/truck as a primary component to their business)

If you are not self-employed but your employer requires that you own a cell phone, PDA, or a home computer for you job, you may also be able to deduct the costs of these items, as well as home office expenses if you are required to take work home with you. You can also deduct costs for tools, work uniforms (not suitable for daily wear) and other job expenses that are not compensated by your employment

Additionally, if you have been unemployed and actively seeking employment, you may be eligible for deductions.

• Costs to prepare resumes and portfolios
• Newspapers & other publications that you purchase to read employment ads
• Costs to advertise your services in the newspaper
• Long distance calls to prospective employers
• Travel costs to go for an interview that is out of your area.
• Fees paid to employment agencies