BEST Tax Deductions For Independent Contractors (CFP Explains!)

As an independent contractor it's critical that you understand your tax liabilities and the potential to include tax deductions when filing your taxes. In this video I speak with guest Stephanie McElheny (CFP, EA, ChSNC), President of Financial Planning at Aspen Wealth Strategies as we target the best tax deductions available to you.

🖥Video Timecodes🖥
0:00 - Intro
0:47 - Meet Stephanie
2:26 - What Is A Tax Deduction?
2:45 - What Qualifies As A Tax Deduction?
3:35 - Are There Restrictions On My Tax Deductions?
5:26 - Is There A Limit To How Many Deductions I Can Take?
6:28 - What Are The Best Deductions For Independent Contractors?
7:34 - Actual Expense Method vs Standard Mileage (Vehicle Deductions)
9:26 - Commonly Missed Deduction Opportunities
12:03 - What Happens If I Show A Financial Loss When Filing?
14:01 - Net Operating Loss (NOL)
15:45 - Continued Annual Losses When Filing (Hobby Classification?)
18:01 - Have Questions? Contact Stephanie

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QUESTION - Have more questions for Stephanie? Let us know in the comments section of this video.

Instagram | Twitter: @YourDriverMike

#yourdrivermike #taxes #taxdeductions

Disclaimer: This video does not purport to be investment advice nor meant to be taken as such. Prior to investing, you should consult with a Certified Financial Planner to ensure that you are making the best decisions for your personal situation after a complete review of your entire financial picture. Any opinions are those of Stephanie McElheny and not necessarily those of Aspen Wealth Strategies. Expressions of opinion are as of this date and are subject to change without notice. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to herein. We do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including through diversification and asset allocation.

Affiliate Disclaimer: This video and/or description contains affiliate links, when shopping or signing up for apps using these links I’ll receive a small commission.

[iUn]

This answered so many questions! Y’all are both awesome!

[jeffb.]

Mike you have excellent interviewing skills. I've always wondered if you were an employee for doordash and they pay you make all these videos

[Chile]

12:45 Maybe one could consider it a hidden gem. I had not heard of being able to deduct half of the self employment tax, which is a whopping 15.3%. Quick question: are sharing plans like medishare 100% deductible?

[laurennicole]

I noticed there is a $12, 000 for single or $24, 000 deduction minimum whether you’re filing single or jointly to receive credit but does that apply to independent contractors? I started driving for door dash and I’m having a hard time figuring out if I’ll be able to get the $.56 per mile back at the end of the year or if I have to meet the $24, 000 (filing jointly)before I would get credit for anything. Doing this part time I will never meet that

[SonOfAGun]

if you itemize instead of using the standard mileage deduction can you still claim mileage in your itemized or is it either or?

[Leeslaughtr]

Very helpful info. Big props thank you!

[JTStonne]

I didn't hear the question, does the mileage deduction only count for active deliveries or all driving with app on? Coming back from an out of zone area is still work.

[JADiaz]

How are you supposed to track your miles? These apps don’t have that listed to keep track…

[Human_Evolution-]

Is there a list so I do not have to watch this and take notes?

[Paula-bhrp]

My question is with a 50 / 50 cent per mile allowance for gasoline in maintenance and all of that that is amount is way higher than actual expenses if I drive 3000 miles a month using a 50 cent or more calculation that's $1, 500 a month that's more than half of what I make where is if I use the actual it would be way less cuz I don't know how to estimate the wear-and-tear on my car other than actual repair bills

[donaldcapitali]

I’m an independent contractor working as a trade show floor manager. I work in cities away from my tax home. Am I allowed a per diem deduction for meals for the cities I’m working in? Also, some shows add a per diem to my daily rate, is this a deduction from my 1099 total?

[wakeywakey]

Are moving violations tax deductible? And can we take the IRS mileage deduction AND car rental fees?

[TheAriasFam]

I used my car for work and personal use. Are maintenance or repairs deductible?

[river_a]

What’s your take on opening a business account solely for gig economy jobs to make expenses more easy to track.I just started doing it last week(about 3hrs a day) did well enough to consider buying a $1200 beater car just for this.Can the purchase of this vehicle be deducted from my taxes.

[Hermosacomolarosa]

I’d like to know what tax deductions an HHA has

[justcruisinmom]

Is mileage doing IC deductible to first shop and home? As well as after shopping and delivering is the mileage back to the store for next shop deductible?

[mariobravo]

Hey guys great info. Can you guys share a few example of someone who made x amount of money and deducted x amount of itmes. Diff possible scenario s on a white board. Thanks

[Hugh]

Could you get guests who experience the Canadian perspective in terms of taxes, earnings, and costs?

[racedub]

If the standard deduction for an individual is over $12, 000....would you not need to show deductions over that amount to even make it worthwhile tracking them. You would have to drive over 21, 000 miles/year (400 miles/week) to get to that amount. I know that's happened to me in the past with jobs that have a W-2. Maybe a 1099 is different?

[AmandeepSingh-ftxz]

Hey Mike, Are we tracking dash time mileage or active mileage (for taxes)? Kind of annoying to do active mileage because I have to keep turning trip on and off even while I'm driving most the time..I forgot to track my mileage. It's devasting because there was a week I made 1200 and another I made 1737..