Freelancing and More!

It’s getting to be that time! It’s time to start thinking about taxes. While none of us are interested in particularly filing our taxes, it’s something we must do. If you’re a freelancer, chances are that your little unsure about what you can deduct and what you cannot deduct.

Keep in mind, that if you made more than $600 on your freelancing endeavors you will be required to claim them. If you are not issued a 1099, this does not mean that you should not be claiming your income.

If you haven’t been issued a 1099, you will have to collect all proof of income (as well as expenses) before you can file your taxes. While this may be time-consuming it will save you a lot of grief.

Whatever you do deduct, you will need proof. You can’t just randomly choose to do actions because they reduce your tax liability. One thing to keep in mind, is that your deductions should actually be in line with your earnings. While this may be a little frustrating, keep in mind that the IRS will frown on you trying to deduct more than what you’re actually making.

There are however some deductions that you can take advantage of as a freelance writer. Let’s take a look at some of them:

Books: if you have purchased books specifically for your writing career, such as style guides, magazines and periodicals that relate to writing, or even marketing books these can be deducted;

Subscriptions: let’s for example say that you subscribe to a research site-that you use a fairly regular basis-this would also be deductible. In addition, if you use a service like Istockphoto, your fees are also deductible;

Other fees: your web hosting fees, paid site subscriptions, design and maintenance fees for your website, may also be deductible.

Summary

If you are in any doubt about what can and cannot be deducted, take a trip over to the IRS website and look up contractors/freelancers. There is a wealth of information and you can find what other items are deductible.

Make sure that all receipts are in order before you file your taxes. If you have any questions or concerns you can either contact the IRS, or an accountant who is familiar with self-employed filings.

Also read: 101 Tax Deductions for Bloggers