Expenses that You are Tax Deductible When You are a Freelancer
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. You may challenge knowing all the forms to use for filing your taxes as a freelancer. You can hire the leading tax consultant in your area to help you file your taxes when you are a freelancer. The goal is to rely on the expertise of this accountant to know the tax forms to use when you are self-employed. You will therefore avoid penalties from the IRS when you hire the best personal CPA near you. Read more now to see the expenses that are tax-deductible when you are a freelancer.
The money you spend on office supplies is a business expense that lowers income. The IRS, therefore, allows you to deduct this expense from your income, lowering your tax burden. 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 other common expense that you are allowed to be tax deductible when you are a freelancer is meal expenses. However, it is not all meal expenses but only the ones you consume when on a business trip. Understand that you can only put reasonable meal expenses. Therefore, you will have problems with the IRS when you deduct inflated meal expenses. Ensure you keep the receipt for the meals you deduct the expenses from the taxes you pay.
Freelancers are also allowed by the IRS to deduct the business insurance expenses from their incomes when calculating the taxes. You may be paying insurance for the car you use as a freelancer. Hence, you need to keep a record of all the premiums you pay to deduct them from your income.
It would be best to search for the details about the 1099 form after you are done with knowing the expenses to write-off in your taxes. You are supposed to know that there are different types of forms. You are required to know the ways in which you are supposed to fill out each form. The 1099 form is given to customers who owe you a certain amount of money. You will now fill your taxes in the form 1099. You should consider finding the best CPA to fill the 1099 form for you.