Do I have to put in business expenses? Licenses, Insurance Etc?

[Coleen3 · Accepted solution]

Yes, the IRS require you to take any expenses that you have incurred.

A self-employed individual is required to report all business income and deduct all allowable business expenses (see above for source). They do not have the option of reporting what is most beneficial.

"Revenue Ruling 56-407, 1956-2 C.B. 564, deals with the issue of taxpayers not taking all allowable deductions in computing net earnings from self-employment for self-employment tax purposes. Rev. Rul. 56-407 held that under §1402(a), every taxpayer (with the exception of certain farm operators) must claim all allowable deductions in computing net earnings from self-employment for self-employment tax purposes.