Working as a Freelancer? Here are Common Expenses to Write-Off in Your Taxes
When working as a freelancer, you are required by the IRS to do your own taxes. As a freelancer, you must keep accurate records of the payments you get from clients as you will use the record to determine taxes to pay. It may headache for many freelancers to learn the right way to do the taxes. To ease your work, it is wise you search for the best personal CPA near me. The goal is to rely on the expertise of this accountant to know the tax forms to use when you are self-employed. The goal is to ensure you pay the right tax amount and deduct various common expenses. Continue reading this blog to see the common expenses that you can deduct from taxes when working as a freelancer.
You can deduct the money you spend on office supplies to calculate your net income. Thus, you can subtract the office supplies from your income when calculating your taxes as a freelancer. Therefore insist on getting a receipt with every order of office supplies you receive. The goal is to have a record to use when calculating the total office supplies expenses for the year. Also, you can present the receipts to the IRS in case of a dispute about your tax returns.
The meal expenses is the other tax write off you will enjoy when you are a freelancer. When you take a business trip, you will take meals, and you are allowed to deduct these expenses on the taxes you pay. You, however, need to know that the meal expenses must be reasonable. The IRS will not accept extravagant meal expenses. Ensure you keep the receipt for the meals you deduct the expenses from the taxes you pay.
Business insurance is the other common expense you can write-off in your taxes when you are a freelancer. You may have an office which you have insured against fire when working as a freelancer. Therefore, you can deduct the monthly premiums to reduce the taxes you pay.
form 1099 is another thing you should keep in mind once you know about the common expenses to write-off in your taxes. The 1099 forms come in various types. Every one of them has a way that you are required to fill it. The 1099 form is given to customers who owe you a certain amount of money. You should know that the places that are appropriate for you to fill the taxes are in the form 1099. Hiring a CPA will be the best idea since he will show you how you are supposed to fill out the form 1099.