Innovative technology and the convenience that the Internet and teleconferencing brings have led more coaches, contractors, professional consultants, and freelance workers to go into business for themselves. Being self employed isn't a means of simply generating additional income to supplement a job - it has become a full-time endeavor. A lot of full-time workers are setting their own hours while making great incomes. However, self-employed people do have distinct tax concerns. Read on for 10 helpful tax tips to reduce the bite Uncle Sam takes out of your income:

1. Keep detailed records of every transaction: Large companies will employ full-time accountants to keep track of income and expense records, but as an individual taxpayer it is your responsibility to keep your records in order. Keeping a receipt on file in support of every single tax deduction you claim should be one of your highest priorities.

2. Professional space deduction: A separate space or portion of a room used exclusively for a home office is an allowable deduction. You must figure out the percentage of space used out of the total home space and apply that same percentage to rent or mortgage payment, utilities and other expenses incurred in keeping your home. Other expenses such as a cell phone or land line used exclusively for business purposes are also allowed.

3. Don't overlook business expenses: Office supplies, shipping fees and postage, newspaper and magazine subscription costs, professional membership dues, and other business related items including computer upgrades and software should be thoroughly maintained. Any expenses accrued while traveling for business would also be included. Be sure to keep all receipts.

4. Childcare Deductions: Deductions are allowed, by the IRS, for all kinds of daycare provided during business hours. Don't overlook these important deductions as they can save you a lot of money.

5. Start a Retirement Plan: Think of creating a self-employed retirement plan (SEP IRA) for tax savings and to save money to finance your retirement. You can just start with a small amount like $100 and if you have $2000 or above, consider a Keogh plan option, in which you will be able to keep more money for your retirement plan in the form of tax-deferred savings.

6. If you legally employ relatives, you can deduct medical expenses for the entire family.

7. If you must, defer earnings: When you are self-employed, you are permitted to slightly change your billing so that you can postpone income if you discover you are in a higher tax bracket.

8. Get your FICA refunded: The self-employed in effect are making both the employers and employee's contribution to the FICA taxes every time they write their own payroll check. The tax code recognizes this so you are permitted to deduct 50% of the payments on the 1040 form.

9. If needed, increase expenses: Just like you may choose to defer your income, should you find that you have a high income that pushes you to the next tax bracket, you may conduct more business purchases at the end of the year to augment some of your tax deductions before the 31st of December.

10. Get Tax Help: Seek tax help from a person who is very well-versed on self employment issues to get the correct needs.

Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has paid a lot of money over the years to learn these Tax Tips for the Self-Employed. Check out these other 5 Small Business Tax Deductions You Don't Want To Miss and How to save a bundle when filing business taxes

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