Working as a Freelancer? Here are Common Expenses to Write-Off in Your Taxes
You will calculate the taxes to pay when you are a freelancer. 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. To ease your work, it is wise you search for the best personal CPA near me. With the help of this tax consultant, you will abide by the regulations set by the IRS for freelancers. You will also get help calculating your taxes and paying them on time when you engage this personal CPA expert. 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. Thus, you can subtract the office supplies from your income when calculating your taxes as a freelancer. Hence, make it a habit to file all the receipts you sell from the office supplies vendors. With the receipts, it is easy to calculate how much money you have spent on office supplies. 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. When you take a business trip, you will take meals, and you are allowed to deduct these expenses on the taxes you pay. Understand that you can only put reasonable meal expenses. 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.
Freelancers are also allowed by the IRS to deduct the business insurance expenses from their incomes when calculating the taxes. You may have an office which you have insured against fire when working 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. It is essential that you know the different types of the 1099 forms. You are required to know the ways in which you are supposed to fill out each form. You are also required to know the person who you are to give the 1099 form. The form 1099 is the one that you are required to file your taxes. You should consider finding the best CPA to fill the 1099 form for you.