With over 40 million taxpayers currently self-employed, self-employment is more common than ever, and that's not just due to changes brought on by COVID-19. From driving for a ride-share company like Uber to starting a new business, self-employment can impact each taxpayer's tax situation differently.
Jackson Hewitt Tax Service® is reminding all freelancers that it's critical every gig-economy worker, freelancer, contractor, self-employed individual, small business owner, and entrepreneur know what deductions are available to improve their tax situation.
"If you are self-employed in America's rapidly expanding gig economy, there are a lot of options to help you pay less on your taxes," said Mark Steber, Chief Tax Information Officer at Jackson Hewitt. "The US government wants to encourage you to seek a side job or start a business and employ people so there are a lot of deductions you may be able to qualify for if you know about them. I recommend all self-employed taxpayers see a Tax Pro each and every year to determine what deductions may be availabe to get the maximum refund they deserve."
One of the most important benefits for the self-employed is the new Qualified Business Income (QBI) deduction. Self-employed workers and small business owners might qualify for a 20% deduction of eligible business income before taxes.
In addition to the QBI deduction, Jackson Hewitt is reminding taxpayers about seven more deductions available to gig-economy workers, freelancers, contractors, the self-employed, small business owners, and entrepreneurs. Depending on their profession and whether they qualify for these deductions, these taxpayers may be able to deduct:
SOURCE Jackson Hewitt Tax Service Inc.