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Topic: Tax Deductions for Freelancers
| Author | Message |
| alr | Posted – 6/13/2008 12:46:38 PM | show profile | email poster I recently got a freelance blogging gig, and though it doesn't pay much I'd like to know what is tax deductible? I write for a beauty site, so would beauty products I write about qualify? How about trips that I take explicitly for writing? What if expenses far exceed profits - is it still worth deducting items? |
| HisGirlFriday | Posted – 6/13/2008 1:49:43 PM | show profile There is a lot of info on this online; in a one-second google search I found this: http://money.cnn.com/2008/03/05/smbusiness/self_employed_deductions.fsb/index.htm Once you get rolling more I think an accountant is invaluable. But first off, I'd say you should not be spending more on expenses than profits, unless you're talking about start-up costs like computer, printer, phone line, etc. Good luck! |
| Village Gal | Posted – 6/13/2008 2:57:44 PM | show profile If expenses far exceed profits, you are sending up a red flag for an audit. Also, Im a bit confused -don't you get those beauty products for free? |
| FraKctured | Posted – 6/13/2008 10:01:15 PM | show profile | email poster Tax Deducts You can do the following: 1. Devote a room of your home to your "home office" and NOTHING else. Anything you buy for this (computer, software, paper, etc) is deductible. You can also deduct utilities based on the percentage of sq footage of the room compared to the entire home. Internet fees, website fees, will all be valid. 2. Keep track of all mileage for work and use the gov't "per mile" figure (currently at 48.5 cents per mile I believe) when you do your taxes. You cannot use miles to and from the office though--just the extra stuff. (This probably won't apply to freelancers.) 3. Other expenses are also eligible (dinners for clients, trips, supplies you're testing, etc). Anything you need to do your job is eligible. If your expenses are larger than your income, it is ok for a short while as you get your business going (it is normal for small businesses to run at a loss for a few years). Over time, this is (obviously) suspect and will raise some questions. Save all receipts, be very organized and you'll be fine. This is al legal and above board--there's no reason to be apologetic about it. Hope this helps. |
