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lv21776
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Managing reimbursed expenses with the standard deduction

Hi 

Am a freelance video editor filing jointly.

 

My expenses are less than the married standard deduction (25k) so I don't itemize. However I am spending more and more on subtitles from an online provider for each video I make. The cost of these is directly invoiced without markup, to my overseas client. This year it's 10k in subtitles ! ... which has to go as 'income' even though it's reimbursed in invoices. Shouldn't I ask my client to put this on their credit card, since it's cutting into my taxable deductions, which is always the standard deduction?

 

Many thanks

Lucy

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3 Replies

Managing reimbursed expenses with the standard deduction

Self employed expenses are deducted on your schedule C and have nothing to do with the personal tax standard (or itemized) deduction.    You might want to visit a paid professional and get some education on reporting self-employed incime.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Managing reimbursed expenses with the standard deduction

The standard deduction for your filing status has nothing to do with the expenses you incur for your business.

Your business expenses from self-employment are entered on Schedule C along with the income you received from the business.

The net gain or net loss for your business is reported on Schedule C and on Schedule 1 Line 3 of your personal tax return.  The totals from Part 1 of Schedule 1 flow to your personal tax return Form 1040 Line 8.

 

 

Managing reimbursed expenses with the standard deduction

You are confusing business expenses---which should be going on your Schedule C if you are self-employed--- and the standard deduction that everyone gets----with the itemized deductions for such things as mortgage interest, property taxes, medical expenses, charity donations, etc.--which go on a Schedule A if you have enough itemized deductions to exceed your standard deduction.     Your business expenses have nothing to do with your standard deduction.

 

Your business expenses do NOT have to exceed your standard deduction.   If you have not been entering them on a Schedule C then you have been making a big mistake.

 

If you are a "freelance video editor" then you are receiving self-employment income.   Have you been using either the online software Self-Employed software or desktop software and have you entered your expenses on a Schedule C?   

 

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

 

 

Explain Standard Deduction—What is it?

https://ttlc.intuit.com/community/credits-and-deductions/help/what-s-my-standard-deduction/00/26370

 

 

It sounds like you might need to amend some previous tax returns if you have not been entering business expenses correctly.

 

Select your tax year for amending instructions:

 

 

 

 

 

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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