Here are five major tax write-offs freelancers shouldn’t ignore when they are getting ready to pay taxes.
This should be the most obvious since most freelancers work out of their home. The IRS allows freelancers to deduct a portion of their mortgage or rent, provided that this space is not used for anything else. It must be designated for work purposes only.
You can deduct the cost of utilities which have been used specifically for work purposes. All you need to do is determine the percentage of space your office occupies in your home and then calculate that against things like gas, electricity, heating, air conditioning, and even phone service.
Clients who don’t pay their bills are a pain, but the IRS helps freelancers with this burden by allowing the unpaid invoices to be written-off as a loss. While it’s never a good experience for bills to go unpaid, you won’t have to worry about it at tax time.
Part of the cost of doing business is getting seen. As such, the cost of flyers, business cards, and other forms of advertising and marketing expenses can be written-off. You can even deduct the cost of owning and maintaining a website.
To stay competitive, you have to spend money to stand out. The costs associated with doing so can add up, but you can deduct expenses related to membership dues and professional fees thanks to the IRS.
Take advantage of these tax liability reduction options.
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