I recently inquired about becoming an independent contractor for a company for web design, and was very pleased with the answers I got.

I have another question now. Someone mentioned that my cable internet can be taken out as a tax deduction, but is it only limited to that? Like I said in my previous post, I'm contracted as a web designer, and don't know much about the tax system.

I want to get another monitor and video card card for my computer so I can support dual monitors (helps a lot with web design productivity), but are those tax deductible?

Also, can you explain the process of deducting these costs from my taxes? When I pay at the end of the year or whenever, do I just subtract all these costs from my taxes I owe, and is there a maximum I can deduct?

Thanks in advance, again.

Business expense is deductible,depends on the States you live in as well.

As an independent contractor, you will report your income AND your expenses on Schedule C.

The costs you posted are for most part deductible. They are 100% deductible if you use the equipment 100% of the time for business. However, 80% is a more believable percentage.

Expect to pay about 35% of your NET PROFIT in taxes. The breakdown is as follows:

- about 15% in self-employment tax.
- about 15% in federal income tax.
- about 5% in state income tax.

Of course, the higher your net profit, the higher the tax percentage for the income taxes.

However, the self-employment tax actually goes DOWN to about 3% once your net profit hits $97,400.

Recommend you get professional tax help.