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. Hence, you need to keep a record of your earnings for a given period as you will use it in calculating the taxes. For many freelancers filling the taxes is a complex process that they struggle to follow- To overcome this obstacle, it is smart you seek the help of the best tax consultant near you. The specialist will help you know the IRS requirements for freelancers to follow. You will therefore avoid penalties from the IRS when you hire the best personal CPA near you. Here are common expenses to write-off in your taxes when working as 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. It is, therefore, necessary you keep all receipts after you purchase various office supplies. You will therefore have a source of data for determining the cost of office supplies for a given year. You can also use the receipts as evidence if the IRS requests for them.
You can also deduct the meal expenses when working as a freelancer to reduce the taxes you pay. Therefore, if you on a business trip and you spend money on food, you need to accumulate all these expenses. 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.
You will also enjoy business insurance expenses write off on your taxes when you are working as a freelancer. You may be paying insurance for the car you use as a freelancer. Thus, the IRS allows you to include the premiums as part of your tax deductibles.
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. When various people owe you some money, that is when you are required to take the 1099 form. 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.
This post topic: Foods & Culinary