12. Medicare Costs
Those who are currently using any medicare plans could qualify for a deduction too. This could lead to a sizeable chunk of money saved over a year, so tackle this part of your taxes as soon as possible.
Because you’ll be paying a self-employment tax, the IRS is quite generous when it comes to deductions. That’s why you’ll be allowed to deduct 7.65% of your net business income before calculating the self-employment tax, which includes your Medicare tax.
Furthermore, Medicare payments are deductible too. You can use paid Medicare premiums to reduce their taxable income for federal income tax purposes. Best of all, even if you don’t go the route of the itemized deduction (more on that here!) deductions can still be taken!
We hoped this article helped clear the air for you! What are some things you didn’t expect to see on our list? Let us know in the comments down below!
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