3 Sneaky Self-Employed Tax Deductions to Avoid

Finding as many self-employed tax deductions as possible is important if you want to lower your tax bill. However, there are certain deductions that many people take that should be avoided. Here are a few sneaky self-employed tax deductions to stay away from.

1. Home Office Deductions

There is nothing wrong with taking a deduction for a home office. However, many people abuse it. You can deduct a portion of the utilities that you use for your business. However, when you do not use the utilities as part of your office, do not deduct them. You can deduct the electricity, a portion of your mortgage, and Internet access used for a home office. However, if your office does not use any other utility, do not deduct any portion of the cost of it.

2. Phone Bill

If you have a phone line that is solely dedicated to business use, then you can deduct it from your taxes. However, if the phone line is shared between the home and the business, you should not include it as a deduction.

3. Mileage

You are entitled to deduct an allowance for mileage that was used for business purposes. However, you should not get in the habit of deducting all the mileage on a vehicle that is also for personal use.