The workers who forgo the yoke of traditional employment to strike it out on their own form a vibrant sector of the American economy. From ambitious entrepreneurs to cunning freelancers and everyone in between, self-employed workers say “no” to a punch-the-clock world and enjoy a great deal of freedom in their work.

However, that freedom comes at a price—namely, the onerous self-employment taxes one must pay when they aren’t a W-2 employee. When tax time comes around, the self-employed seek out relief. Fortunately, the IRS allows for deductions and strategies that can take some of the sting out of those tax rates. The best tax breaks for the self-employed allow workers to take honest deductions that won’t burn them in the long run. Here are a few to consider.

The Home Office

The pandemic relegated millions of Americans to their home offices and kitchen where they acquainted themselves with webcams, broadband connectivity tests, and lagging video calls as they packed up their offices and started to work from home. Tantalized by visions of tax deductions for home offices, W-2-bound employees were chagrined to discover that this deduction was no longer available during the pandemic. Self-employed people, on the other hand, continue to enjoy deduction opportunities for home office expenses as long as they maintain dedicated square footage for exclusive and extensive work use. This deduction can help take a bite out of your utilities and mortgage.

SEP IRA

If you’re self-employed but also have employees of your own, investing in your retirement and theirs can provide a significant tax break. Simplified Employee Pension plans allow employers to make contributions for themselves with matching contributions on behalf of their employees, making this an ideal plan for very small businesses. You can even establish an SEP as a sole proprietorship with no other employees at all. Unlike a 401(k) plan, contributions from an SEP go into traditional IRAs. As pre-tax contributions, they represent a sizable tax break in the short term, which can be quite useful for a small business.

Continuing Education

The road to self-improvement can prove costly when it involves the American educational system. The expenses for continuing education can be especially burdensome for self-employed workers. Luckily, the IRS allows for deductions relating to tuition and ancillary costs. Like all the best tax breaks for the self-employed, however, Uncle Sam does maintain some rigorous standards for what qualifies—the lessons you learn and the credentials you earn must pertain to your existing work.

string(3785) "The workers who forgo the yoke of traditional employment to strike it out on their own form a vibrant sector of the American economy. From ambitious entrepreneurs to cunning freelancers and everyone in between, self-employed workers say "no" to a punch-the-clock world and enjoy a great deal of freedom in their work. 



However, that freedom comes at a price—namely, the onerous self-employment taxes one must pay when they aren't a W-2 employee. When tax time comes around, the self-employed seek out relief. Fortunately, the IRS allows for deductions and strategies that can take some of the sting out of those tax rates. The best tax breaks for the self-employed allow workers to take honest deductions that won't burn them in the long run. Here are a few to consider.
The Home Office



The pandemic relegated millions of Americans to their home offices and kitchen where they acquainted themselves with webcams, broadband connectivity tests, and lagging video calls as they packed up their offices and started to work from home. Tantalized by visions of tax deductions for home offices, W-2-bound employees were chagrined to discover that this deduction was no longer available during the pandemic. Self-employed people, on the other hand, continue to enjoy deduction opportunities for home office expenses as long as they maintain dedicated square footage for exclusive and extensive work use. This deduction can help take a bite out of your utilities and mortgage.
SEP IRA



If you're self-employed but also have employees of your own, investing in your retirement and theirs can provide a significant tax break. Simplified Employee Pension plans allow employers to make contributions for themselves with matching contributions on behalf of their employees, making this an ideal plan for very small businesses. You can even establish an SEP as a sole proprietorship with no other employees at all. Unlike a 401(k) plan, contributions from an SEP go into traditional IRAs. As pre-tax contributions, they represent a sizable tax break in the short term, which can be quite useful for a small business.
Continuing Education



The road to self-improvement can prove costly when it involves the American educational system. The expenses for continuing education can be especially burdensome for self-employed workers. Luckily, the IRS allows for deductions relating to tuition and ancillary costs. Like all the best tax breaks for the self-employed, however, Uncle Sam does maintain some rigorous standards for what qualifies—the lessons you learn and the credentials you earn must pertain to your existing work."

Everyone says the economy’s healthier than ever, but some of us still find it necessary to make that paycheck stretch…and stretch…and stretch. The better we understand our spending habits, the better we can manage them. Living frugally can benefit you in many ways. You’ll grow more self-reliant, creative, and resourceful as you learn to make

You Lose $20K Each Year Just For Being a Mom You may not know this, but there was a time when smoking was considered “liberated” behavior for women. There was a cigarette company Virginia Slims that was created specifically to attract female smokers during the bad old 1970s. The slogan was “You’ve come a long

Experts agree: it’s time to clean your workspace for your most creative era yet Spring cleaning is overrated. In the Spring, I want to go-go-go! Not get bogged down in the minutiae of tidying. But once I get started, I’m one of those people who can’t stop decluttering. So I carve out designated days for

Despite the fact that late-stage capitalism is an amoral hellhole driven by a borderline religious belief in the sanctity of brands, we would never, ever suggest that anyone should shoplift from big-box stores, or even imply that doing so is morally okay or a victimless crime. But hypothetically, if we were to give any tidbit

The Momager May Be Worth More Than You Think… Kris Jenner is a pop culture icon for many reasons. While you may have watched her meteoric rise to fame on Keeping Up with the Kardashians — which originally debuted on E! — she’s actually been a fascinating figure in the public eye for ages.  As

In the 1980s movie Little Shop of Horrors, the protagonist Audrey fantasizes about owning a house of her very own. She doesn’t ask for much: just a simple one-storey place with a washer, dryer, and bedding will do.  And while this moment in the film is intended to satirize the American Dream by underlining how

The Kar-Jenner family is loaded thanks to their business prowess (and fierce momager, Kris Jenner.) Kim Kardashian said it best when she lamented that it “seems like nobody wants to work these days,” but these sisters never have a day off. And that’s why the topic of Kylie Jenner’s net worth is so intriguing.  But

If your business offers corporate credit cards or expense accounts to employees, there’s a good chance there is unethical spending going on. 33% of corporate credit card holders admit to blatantly defrauding the companies they work for, and twice that amount confess to making “risky purchases.” But a thread on AskReddit reveals some of the

Taylor Swift is a megastar singer-songwriter known for her narrative songwriting, catchy pop tunes, and versatility across genres like country, pop, and indie folk. She breaks every music record with ease, partially thanks to her die-hard Swiftie fans who follow her with vigor and buy out every single show. And with Taylor Swift’s net worth

Traditional weddings can be incredibly stressful, not to mention super pricey – many newlyweds couldn’t buy a house with that money. What’s supposed to be the happiest day of your life can often feel like an endless quest for absolute perfection – almost as if the ceremony doesn’t come off flawlessly, the marriage itself will