What tax deductions can self-employed individuals claim?

Home Office Deduction

If you use a portion of your home exclusively for your business, you may qualify for the home office deduction. This is a fantastic perk that can lighten your tax burden. The space must be used regularly and solely for business purposes to qualify.

For instance, if you set up a small office in a spare room or a designated corner of your living area, you can deduct a portion of your rent or mortgage interest. But it doesn't stop there!

You can also deduct a percentage of the costs of utilities related to that space, such as electricity, water, and internet.

For example, if your home office occupies 10% of your living space, you could deduct 10% of your utility bills. This deduction can amount to significant savings if you work from home frequently.

Supplies and Equipment

Running a side business often requires a variety of materials and tools. Whether you're buying software, office supplies, or products for resale, these expenses can be deductible.

Think about the items that help you operate effectively—printers, paper, pens, and even subscription services that enhance your productivity.

For example, if your side hustle involves graphic design, any software you purchase, like Adobe Creative Suite, is a valid deduction. Similarly, that can also be included if you need to buy a new laptop to manage your workload. Keeping detailed records of these purchases and their related costs will help you maximize your deductions and, ultimately, your savings.