Business > Self-Employment Business Records and Deductions
Self-Employment and Business Records
If you’re self-employed, you need to report that income. You can also claim business expenses to lower your taxable income.
• 1099-NEC or 1099-K showing income earned as an independent contractor
• Records of all business income and expenses
• Documentation for home office expenses, including square footage of home and square footage of area used exclusively for business
• Records for business assets to be depreciated, including cost and date placed in service
• Miles traveled for business purposes.
Deductions
Deductions can reduce your taxable income, lowering the amount of tax you owe or increasing your refund. Generally, you can claim the standard deduction, a flat amount based on your filing status, or itemize deductions. If you itemize deductions, you need information on the following:
• Out-of-pocket medical expenses
• Premiums paid for long-term care insurance
• Form 1098 showing any mortgage interest, mortgage insurance premiums, and points you paid during the tax year
• Real estate taxes
• State and local income taxes or sales taxes
• Taxes paid with your vehicle registration
• Charitable expenses
• Documentation of casualty losses (if you lived or owned property in a federally declared disaster area)
