The 2009 tax
year is just about to come to a close.
And while solo recruiters may get hit a little harder with taxes than
their in-house brethren, there are a few perks that work to your benefit at tax
time. Let’s take a look at a few:
1.
Solo
recruiters who receive a 1099 from clients are able to deduct business expenses
from their income which will reduce their taxable income. You may be able to
deduct the cost of a computer used for business, printers, fax machines, postal
costs and other supplies needed for the operation of your business. Hopefully
you have taken the time to keep track of receipts, if not, ask your accountant
if you can use bank statement records to track and ultimately deduct your 2009
business expenses.
2.
Solo
recruiters will be responsible for their social security and Medicare taxes
(15.3% of their income); but they will be able to deduct half of that amount.
3.
Have you
invested in your retirement account? If you’re a solo recruiter, you SEP
retirement account which you can fund with up to $49,000. That amount can be
deducted from your income, reducing your taxable income amount. You can also
deduct contributions to an IRA.
4.
If you’re
paying for private insurance and are not eligible for health insurance through
your spouse, you may be able to deduct the cost of your health insurance
premiums. But the deduction cannot
be higher than your net income for 2009.