r state, may deduct living expenses for time they spend away from home but only when the legislature is in session or when the legislature was not in session but their presence was required at a formally recorded legislative meeting (( 162(h)). Thus, the purpose of section 162 appears to be to allow for the deduction of the reasonable and ordinary expenses associated with conducting one's livelihood. This is significant, of course, because the amounts expended in the course of conducting one's trade should not be considered "income", per se, because these amounts are actually expended so that the taxpayer can generate income. The income generated by these expenditures is what is eventually taxed as taxable income.
In addition to the deductions listed above, self-employed individual taxpayers as defined by section 401(c)(1) may deduct up to 30 percent of their health insurance expenses as long as that amount does not exceed their earned income in the business for which the coverage is
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