Tax deductions for freelancers

[Momosgirl]

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

[LJane29]

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

[VolvoGirl]

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.