Self-Employment Deductions

Is there a standard deduction the self-employed can take if they opt not to itemize other deductions?

Dear Janet,

After the birth of our son, my wife, Laurie, decided to open a private speech pathology practice. Laurie travels to people’s homes and really doesn’t have much in the way of deductions. Is there a standard deduction the self-employed can take if they opt not to itemize other deductions?

— Steve Summer, NJ

Dear Steve,

There is no “standard deduction” for the self-employed. But there is an easy way to report self-employment income if she has less than $2,500 in business expenses for the year and meets certain other qualifications. It’s Schedule C-EZ, a simplified version of the Schedule C form for reporting sole proprietorship income and losses. Your wife can use that form for deducting her mileage and other expenses associated with the business. Don’t forget, she’ll also need to file SCHEDULE SE, to pay Self-Employment Tax, if she has net earnings from self-employment of $400 or more.

Get started image

Ready to get started?

Get the expert support you need

Start Now

Related Articles

Borrow Less, Sell More

by Rob Spiegel, on July 20, 2022

3 Great Money Tips For College Freshman

by Team ZenBusiness, on July 20, 2022

Accounting For Business: Understanding The Value Of Three Way Matching

by Team ZenBusiness, on July 20, 2022

The Prevalence and Deterrence of Fraud In Small Businesses

by Patrick Furnari, on July 20, 2022

Things Every New Business Owner Should Know About Payroll

by Team ZenBusiness, on July 20, 2022

How To Sell Your Business

by Team ZenBusiness, on July 20, 2022