topic Re: Tax deductions for freelancers in Self employed

Tax deductions for freelancers

Momosgirl — Wed, 27 Oct 2021 16:58:39 GMT

What are the most common available tax deductions that freelancers fail to take advantage of?

Re: Tax deductions for freelancers

LJane29 — Wed, 27 Oct 2021 17:19:40 GMT

Hi Momosgirl-

It really depends on what freelance work you are doing as each industry has fairly common expenses. For example, a graphic designer may have a lot of computer software programs (or subscriptions) that they can write off where as an Uber driver only needs their phone to operate.

TurboTax Self-Employed helps guide you through the most common expenses by industry.

Hope that helps!

Lisa

Re: Tax deductions for freelancers

VolvoGirl — Wed, 27 Oct 2021 17:22:33 GMT

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.