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In the US if you have a mortgage and/or office in your house you can take additional deductions. Contributions to an individual 401k are deductible.

• nicksergeant 12y ago
  Certainly. And I do that. But after a point, you're losing a ton of money by not having enough deductions to cover your income.
  • dwd 12y ago
    Which puts you in the same position as an employee paying top tax rates. It's the pre-tax deductions (cost of doing business expenses) that differentiate working for yourself or for someone else.
    • nicksergeant 12y ago
      But those pre-tax deductions are pretty limited in the software development field. More code written != more deductions taken.