Taxes

[valeriesimmons2468]

I am complete my taxes and as a self employed person, I am obligated to to $2555 in self-employment taxes. I would like to know how can I lower that tax bill (from Business Expenses and Itemized Deductions) to maximize my refund from the Earned Income Credit and the American Opportunity Credit

[ThomasM125 · Accepted solution]

Since you are self-employed, you may be able to benefit from deducting any health insurance premiums you pay. You may qualify for this if you are not eligible to participate in a medical insurance plan thorough your or your spouse's employer. You will see an option for this in the business deductions section of TurboTax under Insurance Payments, and then Health Insurance Premiums.

If you have an office in your home that you use regularly and exclusively for the business, you may benefit from a home office deduction. You will see an option for that in the Business Expenses section, and then Home Office Expense.

If you use your car for your self-employed business, you will see a section for that under Business Expenses, and then Business Vehicle Expense.

Most businesses qualify for a Qualified Business Income deduction. You will see an option for that after you enter your business income and expenses.

Keep in mind that virtually all expenses you have that are ordinary and necessary to operate your business are deductible, so be careful not to overlook any business expenses.