08/21/2026
SELF-EMPLOYMENT TAX & BUSINESS EXPENSES — KNOW WHAT YOU CAN DEDUCT! 💼📊
Are you self-employed, a freelancer, independent contractor, gig worker, or small-business owner? Understanding Self-Employment Tax and Ordinary & Necessary Business Expenses can help you stay organized and prepare for tax season.
💰 SELF-EMPLOYMENT TAX
Self-employment tax generally covers Social Security and Medicare taxes for individuals who work for themselves. It is separate from federal income tax and is generally calculated based on your net earnings from self-employment.
📋 ORDINARY & NECESSARY BUSINESS EXPENSES
Business expenses may be deductible when they are ordinary and necessary for carrying on your trade or business.
Examples may include:
• Business supplies and materials
• Advertising and marketing
• Business-related software and subscriptions
• Professional fees
• Certain business insurance costs
• Business-use vehicle expenses
• Business-use portion of phone and internet
• Other qualifying expenses related to your business
⚠️ KEEP GOOD RECORDS!
Keep receipts, invoices, mileage records, bank statements, and other documentation supporting your business income and expenses. Personal expenses generally cannot be deducted simply because you are self-employed.
📌 Remember: A business expense being deductible does not necessarily mean you receive the entire expense back as a tax refund. Your deductions generally reduce taxable business income.
💡 PLAN NOW — DON'T WAIT UNTIL TAX TIME!
Let Wesby-Magee Tax Preparation help you understand your self-employment income, business expenses, and tax responsibilities.
📧 Email: [email protected]
📱 Phone/Text: 269-363-6181
Wesby-Magee Tax Preparation
Know Today. Save Tomorrow.
