It is not a secret that self-employed people can actually deduct 100% of health and long-term medical costs for themselves, their spouse, and their dependants. You can make good use of this facility if you are running your own business or working as a professional; deduct the amount of federal taxes you have to pay with the health insurance premiums you are paying.

If you use vehicles on your business operations, you can also choose to deduct vehicle expenses — instead of the usual mileage calculations — to your federal tax. You can easily deduct the amount of federal tax you have to pay with depreciation, gas, oil, tires, licenses, repairs costs plus the auto insurance premiums you are paying for the vehicles.

Other insurance premiums can also be used to deduct your federal tax. Make sure you take your time and study the regulations to enjoy maximum benefits of the available laws. You may want to consult professionals to help you understand the correlation of insurance premiums and federal tax, and of course see which insurance policies you should report on your yearly tax calculations to enjoy deductions. You will be saving thousands from the calculation in no time.