Working as a Freelancer? Here are Common Expenses to Write-Off in Your Taxes
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. For many freelancers filling the taxes is a complex process that they struggle to follow- 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.
You can deduct the money you spend on office supplies to calculate your net 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. 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. Therefore, if you on a business trip and you spend money on food, you need to accumulate all these expenses. It is wise to know that meal expenses cannot exceed a given limit. Therefore, you cannot take advantage of this tax write off to take super expensive meals when on a business trip. You also need to maintain receipts from the restaurant on the meals you consume on a business trip.
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. Hence, you need to keep a record of all the premiums you pay to deduct them from your income.
When you have understood about the common expenses to write-off in your taxes, it is important you now try out the form 1099. 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. The form 1099 is the one that you are required to file your taxes. 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.