The IRS considers freelancers to be self-employed and requires them to do their own taxes. It is therefore up to you to calculate your income for the years and determine the taxes you will pay. It may headache for many freelancers to learn the right way to do the taxes. You can hire the leading tax consultant in your area to help you file your taxes when you are a freelancer. The specialist will help you know the IRS requirements for freelancers to follow. 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.
The money you spend on office supplies is a business expense that lowers income. The great thing is that you have the option to deduct the office supplies expenses when calculating your taxes. It is, therefore, necessary you keep all receipts after you purchase various office supplies. The goal is to have a record to use when calculating the total office supplies expenses for the year. The receipts can also serve as evidence when you have a dispute with IRS on the taxes you are supposed to pay for the year.
The meal expenses is the other tax write off you will enjoy when you are a freelancer. 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. The IRS will not accept extravagant meal expenses. It is important to file the meal receipts after the business trip.
Business insurance is the other common expense you can write-off in your taxes when you are a freelancer. You may be paying insurance for the car you use 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. It is essential that you know the different types of the 1099 forms. Every one of them has a way that you are required to fill it. You are also required to know the person who you are to give the 1099 form. You should know that the places that are appropriate for you to fill the taxes are in the form 1099. When you are filling out this form 1099, you might be confused on how to go about it, and by this, you are supposed to hire a CPA.