No, we do not deduct taxes when we pay you. Since you are an independent contractor, we only issue 1099’s. Since you are an independent contractor means, you are self-employed, therefore you pay your federal and state taxes directly to the IRS. (If your state has taxes)What is the benefit? We can not offer tax advice and we highly encourage you to speak to a tax professional as each person's situation is unique. You can deduct almost anything dealing with your business. For example, Internet and phone service, computer, office furniture, certification fees and so much more. Working from home has many tax advantages.