When working as a freelancer, you are required by the IRS to do your own taxes. It is therefore up to you to calculate your income for the years and determine the taxes you will pay. You may challenge knowing all the forms to use for filing your taxes as a freelancer. You can hire the leading tax consultant in your area to help you file your taxes when you are a freelancer. With the help of this tax consultant, you will abide by the regulations set by the IRS for freelancers. The goal is to ensure you pay the right tax amount and deduct various common expenses. Read more now to see the expenses that are tax-deductible when you are a freelancer.
You can deduct the money you spend on office supplies to calculate your net income. The IRS, therefore, allows you to deduct this expense from your income, lowering your tax burden. Therefore insist on getting a receipt with every order of office supplies you receive. With the receipts, it is easy to calculate how much money you have spent on office supplies. Also, you can present the receipts to the IRS in case of a dispute about your tax returns.
The meal expenses is the other tax write off you will enjoy when you are a freelancer. When you take a business trip, you will take meals, and you are allowed to deduct these expenses on the taxes you pay. It is wise to know that meal expenses cannot exceed a given limit. Therefore, you will have problems with the IRS when you deduct inflated meal expenses. It is important to file the meal receipts after the business trip.
Freelancers are also allowed by the IRS to deduct the business insurance expenses from their incomes when calculating the taxes. You may have an office which you have insured against fire when working as a freelancer. Thus, the IRS allows you to include the premiums as part of your tax deductibles.
form 1099 is another thing you should keep in mind once you know about the common expenses to write-off in your taxes. It is essential that you know the different types of the 1099 forms. You are required to know the ways in which you are supposed to fill out each form. You are also required to know the person who you are to give the 1099 form. You will now fill your taxes in the form 1099. When you are filling out this form 1099, you might be confused on how to go about it, and by this, you are supposed to hire a CPA.