Self-employed individuals have to understand what deductions apply to someone that is their own boss. It is crucial for the self-employed to know their tax laws and know what deductions can be taken. In many cases, it is the deductions that will allow entrepreneurs to get back a lot of the  money they’ve spent throughout the year.

Running a business can be costly. So, understanding what tax breaks can benefit the self-employed, will make those costs seem a lot less detrimental.

According to USA Today, here are several Biggest Tax Breaks For Entrepreneurs:

Supplies and professional dues – Whether it’s a $2,000 computer to design websites or a $2 pen to write down appointments, expenses on job-related materials are deductible – and collectively, they can add up in a big way. Often overlooked, however, are job-as-sociated dues that include fees for trade associations or even subscriptions to periodicals and journals that are relevant to your profession.

Home-office deduction – Many self-employed people work out of their homes, and it’s easier than ever before to access related tax breaks thanks to a simplified home office deduction, said Lisa Greene-Lewis, a CPA and tax expert for TurboTax. The IRS allows you to declare $5 per square foot of your home used for business up to 300 square feet, or a maximum of $1,500, as long as the space is used “exclusively or regularly” for business-related use. And if you have significant expenses including utlities, maintenance or even mortgage interest on the home it-self, you can itemize our individual home office expenses for an even bigger break above that maximum.

Tax and legal advice – If you’re intimidated by all this or just worried you’re leaving something out, don’t panic. The IRS allows a deduction for tax-preparation expenses, as well as other professional legal and accounting services necessary for the efficient operation of your business, said Greene-Lewis. In fact, TurboTax just launched a software service specifically for the self-employed that can find deductions you may not know about simply by browsing through transactions in your bank account. “It helps discover deductions that they didn’t even know were possible,” said Greene-Lewis of TurboTax, which means you not only get a tax break for buying the software but plenty of other deductions thanks to the added advice. Don’t overlook the benefit of accounting software or hiring a tax professional like a CPA, particularly since these expenses are tax deductible themselves.

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