2020 Tax Deductions

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While reviewing the recent product offerings from TurboTax, I have come across a tool they put out to identify tax deductions for different classes of self-employed professionals. While some write-offs are more common, such as mileage or office expenses, TurboTax created an easy list to check which expenses you can deduct in different industries.

As always, this should be a starting point to keeping most of your earnings. Nevertheless, the list is pretty comprehensive and helps to think about deductions a little deeper and ideally capture expenditures you might not have initially considered.

There are tens of industries listed, ranging from Accounting, Acting, and Art all the way to Social Media Services to Sports Officiating. The IRS allows to deduct expenditures that are related to the business activities generating income.

Let’s take Construction industry as an example. First, there is a list of more common deductions in categories such as Assets (power tools), Supplies (materials, hand tools, trade magazines, protective gear), Business Insurance (general liability, worker’s comp), or Advertising (business cards, brochures, website, online ads).

Then there are less common deductions for the construction industry such as different type of expenditures related to employees (benefits – health insurance premiums or education assistance), Building or land rental, Home office (insurance for home, mortgage interest for home) or long term care insurance.

When preparing taxes on your own, the tax software goes over those deductions with a goal of minimizing your taxable income. Looking at the list ahead of time helps you better prepare for tax filing and have your paperwork ready to claim the maximum refund.

For the complete list of the industries, click on the link below:
https://turbotax.intuit.com/personal-taxes/self-employment-taxes

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