If you’ve taken the leap and you’re hanging out a shingle as a self-employed software developer, it’s important to know how to take advantage of the benefits of being self-employed.
Knowing about tax deductions for software developers is important when it comes to maximizing the bonuses of being a freelancer instead of an employee. When tax time comes, you’ll be glad you had all the information you needed.
Some of the tax deductions for software developers may seem inconsequential, but when taken together they can add up to a big reward when it comes time to file your tax return.
Each of the software developer tax write-offs can reduce your taxable income, which means less taxes paid and more profit in your bank account. Tax deductions for software developers also help offset the cost of establishing and maintaining your business.
While it’s good to consult with an expert like an accountant if you’re uncertain, here are the expenses that are eligible as tax deductions for software developers.
The federal taxing authority, the Internal Revenue Service (IRS), has a definition of business expense that guides what is deductible: an expense that is both ordinary and necessary:
As a self-employed software developer, it’s difficult to know all the software developer tax write-offs that can be a big benefit to you at tax time. Our list of tax deductions for software developers will help you know what to track and deduct as an expense.
There are some expenses that cannot be used as tax deductions for software developers:
Now that you know about all the software developer tax write-offs, here’s how you can take advantage of them:
Not a software developer? Find tax deductions for your specific profession below.