Everyday Law & Life

Top Tax Deductions for Self-Employed People in the U.S. If you’re self-employed, taxes can be a major headache — but they don’t have to be. The U.S. tax code offers a variety of deductions that can reduce your tax burden and help you keep more of your hard-earned money. Let’s break down the most valuable deductions for freelancers, gig workers, and small business owners. 💡 1. Home Office Deduction If you work from home, you may be able to deduct a portion of: Rent or mortgage interest Utilities Internet & phone Repairs and maintenance Must be exclusively and regularly used for business. 🚗 2. Vehicle and Mileage Expenses If you use your car for business: You can deduct mileage ($0.655/mile in 2023) Or actual expenses (gas, maintenance, depreciation) Keep detailed logs — the IRS is strict. 📱 3. Business-Related Technology Deduct: Laptops Phones Software subscriptions (Zoom, QuickBooks, Canva, etc.) If it’s used for your bu...

Is an HSA Really Worth It? Pros, Cons, and Tax Benefits Explained Health Savings Accounts (HSAs) are often praised as one of the best tax-advantaged tools available in the U.S. — but are they really worth it for everyone? Let’s take a deep look into how HSAs work, who can benefit the most, and the potential downsides you should know before opening one. 💼 What Is an HSA? An HSA (Health Savings Account) is a tax-advantaged savings account that allows you to set aside money pre-tax for qualified medical expenses. You can only contribute if you have a High-Deductible Health Plan (HDHP). ✅ Key Tax Benefits Tax-deductible contributions (Even if you don’t itemize deductions) Tax-free growth Earnings and interest grow without being taxed Tax-free withdrawals When used for qualified medical expenses 🔁 Known as a “triple tax advantage” 📊 2024 Contribution Limits $4,150 for individuals $8,300 for families +$1,000 catch-up for age 55+ 🔍 What Can ...

Is It Better to Take Social Security at 62 or Wait Until 67? Deciding when to start collecting Social Security can have a huge impact on your retirement income . You can start as early as age 62 , but is it better to wait until full retirement age (FRA), which is 67 for most people ? Let’s compare the pros and cons to help you decide. 🧓 What Happens If You Take Social Security at 62? You’ll receive reduced monthly benefits — about 30% less than what you’d get at age 67. ✅ Pros: Get money earlier Helpful if you retire early or have health concerns May be necessary if you can’t work ❌ Cons: Lower lifetime benefit if you live long Locked-in lower monthly payments May affect spousal/survivor benefits 👴 What Happens If You Wait Until 67? You’ll receive 100% of your full benefit . ✅ Pros: Higher monthly income for life Better spousal/survivor benefits More tax-efficient in some cases ❌ Cons: Delay in receiving funds May not live lon...