Do Independent Contractors Pay Less Tax?

List: Posted: 03/09/11

Working as an independent contractor offers many benefits.  For starters, it typically offers much greater freedom than working a traditional 9-5 job for a regular employer. 

 

It can also offer unique benefits when it comes to filing your taxes.  The problem is that for many independent contractors, it also makes tax time more difficult.  One of the best things you can do is learn as much as possible about filing taxes as an independent contractor.

One thing you should certainly know about your taxes is that as an independent contractor, you can deduct thousands of dollars worth of expenses.  This includes vehicle expenses associated with work, office equipment, home office expenses, Internet, phone service, and anything else that you use for your business.  If you have a home office, you can even deduct a portion of your rent and utilities when taxes are due.

Learning as much as you can about taxes is essential when you are looking to take advantage of all of the deductions available to you.  Keeping a list of all receipts for business meals, travel logs, office expenses, and the like can help you save thousands at tax time.  Schedule C instructions can help you understand what business deductions you can claim, and picking up a book on the matter can be very helpful.

When you understand all of the deductions for independent contractors, taxes can be much easier to file and much less costly.  Take the time to learn what you can claim.  It can pay off in a big way.

Tax Return Preparation, State & Income Taxes

    We look at your life through tax - and find ways to help. H&R Block is a global consumer tax services provider that prepares one in every seven U.S. tax returns. H&R Block is global leader in tax preparation services - we've prepared more than 700 million tax returns through retail locations and at-home, digital solutions since 1955. And with approximately 12,000 tax offices in all 50 states, as well as U.S. territories, military bases and abroad, we're always available to help you file your taxes. Find your local Ashburn tax office and schedule an appointment today.

    • 44110 Ashburn Shopping Plz Unit 198 Ste 198
    • Ashburn, VA 20147
    • (703) 723-9530

      We look at your life through tax - and find ways to help. H&R Block is a global consumer tax services provider that prepares one in every seven U.S. tax returns. H&R Block is global leader in tax preparation services - we've prepared more than 700 million tax returns through retail locations and at-home, digital solutions since 1955. And with approximately 12,000 tax offices in all 50 states, as well as U.S. territories, military bases and abroad, we're always available to help you file your taxes. Find your local Broadlands tax office and schedule an appointment today.

      • 43150 Broadlands Ctr Ste 122 Ste 122
      • Broadlands, VA 20148
      • (571) 291-2216

        Contact us at (866) 314-1357 in Ashburn, VA, for more information about our tax services.

        • 22540 Deirdre Sq Apt 101
        • Ashburn, VA 20148
        • (703) 935-8600
        • 44081 Pipeline Plz Ste 215
        • ASHBURN, VA 20147
        • (703) 723-6388

        The material in this article is for informational purposes only. The views expressed in this article are those of the author and do not necessarily reflect the views or opinions of Local.com. See Additional Information

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