A few of these breaks are nothing much to crow about, but a certain four can save you thousands of dollars in federal income tax. For instance, self-employed workers can subtract business-related expenses from business revenue and pay tax only on the net earnings. (This piece deals only with federal income tax. That adds up to a $3,000 deduction for the full year, which would save someone in the 25% tax bracket $750 in federal income tax. If your state conforms with federal tax law, and many do, the income is free from state tax as well.

Source: Los Angeles Times January 23, 2021 13:02 UTC