Hi keck,
Freelancer reports business income and business expenses on Schedule C. Net income (loss) is on Schedule 1, line 3, which is part of Adjusted Gross Income.
So the direct business expenses vary depending on your actual out of pockets expenses and others, such as standard mileage vehicle expenses, business cell phone usage, office expenses/supplies, etc. Please refer to form and instructions.
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
After adjusted gross income, depending on your filing status, there is a standard deduction, for example, Single filing status for tax year 2021 is $12,550. You get this regardless if you have net business income.
Hope the above helps. Thank you.
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