Self-employed people who file a 1099-MISC form showing taxable income can find eligible tax deductions by visiting the Credit & Deductions pages of the Internal Revenue Service website. Allowable deductions are separated by category, with explanations provided to describe what types of deductions are lawful and available to independent earners.Continue Reading
Deductions should be ordinary and necessary for the normal operation of a business, according to the IRS. Business expenses are those expenses that make up the cost of doing business if the business operates to make a profit. Business expenses should be separated from living expenses except in cases where such expenses overlap. If the expenses do overlap, they must be divided into personal and business expenses, and the taxpayer can only deduct what falls strictly under the category of a business expense.
The IRS website lists other business expenses that are able to be deducted from your 1099 filing, including pay to employees, taxes, insurance, any retirement plans for yourself or your employees, any payments made to rent facilities or property you do not own, and interest on the capital you borrowed for the purpose of your business.
Capital expenses are not considered deductible business expenses. Capital expenses include some of the costs associated with starting the business, improvements to the business, and business assets.Learn more about Taxes