The Ultimate Guide to Self-Employment Income and Expenses

💼Self-employment income includes earnings from sources like 1099 NEC and 1099k forms.

📊The IRS considers self-employed individuals as businesses, allowing them to write off ordinary and necessary expenses.

💡Keep track of your expenses using a profit or loss statement to easily categorize and deduct them during tax filing.

📱If you use your phone for business purposes, such as GPS or communication, you can deduct a portion of your phone expenses.

🚗Vehicle expenses, including gas, maintenance, and mileage, are essential deductions for ride-sharing drivers like Uber.

What is considered self-employment income?

—Self-employment income includes earnings from sources like 1099 NEC and 1099k forms, indicating that you are viewed as a business by the IRS.

What expenses can be deducted for self-employment?

—As a self-employed individual, you can deduct ordinary and necessary expenses such as vehicle expenses, phone expenses, and office supplies, among others.

How can I keep track of my self-employment expenses?

—Use a profit or loss statement to categorize and track your expenses. This will help you stay organized and ensure that you don't miss any deductions during tax filing.

Can I deduct my phone expenses for business use?

—Yes, if you use your phone for business purposes, such as GPS or communication, you can deduct a portion of your phone expenses.

What are the essential vehicle-related deductions for ride-sharing drivers?

—Ride-sharing drivers like Uber can deduct vehicle expenses, including gas, maintenance, and mileage, as these are necessary for their business operations.

00:25Self-employment income includes earnings from sources like 1099 NEC and 1099k forms, indicating that you are viewed as a business by the IRS.

01:21The IRS allows self-employed individuals to deduct ordinary and necessary expenses to minimize their taxable income.

03:36Use a profit or loss statement to categorize and track your expenses, ensuring that you don't miss any deductions during tax filing.

06:11Self-employed individuals can deduct a portion of their phone expenses if they use it for business purposes like GPS or communication.

08:50Ride-sharing drivers like Uber can deduct vehicle expenses, including gas, maintenance, and mileage, as these are necessary for their business operations.