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Returning Member
posted Oct 27, 2021 9:58:39 AM

Tax deductions for freelancers

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

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2 Replies
Expert Alumni
Oct 27, 2021 10:19:40 AM

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

Level 15
Oct 27, 2021 10:22:33 AM

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.