[jimmygle]

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.

[nicespringgirl]

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

[AtlantaTaxExpert]

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.