Comments on: 20 Tax Deductions for Freelancers

By: Freelance Writing Jobs for April 15, 2009 : Freelance Writing Jobs for Web and Print

Wed, 15 Apr 2009 13:06:52 +0000

[...] What makes life easier for some is to file quarterly. Also, don’t forget to research your deductions. For instance, since my office is only used as my office and nothing else, I can deduct all the [...]

By: Bootstrapper » 50 Tools and Resources for Freelancers During Tax Season

Bootstrapper » 50 Tools and Resources for Freelancers During Tax Season — Fri, 29 Feb 2008 15:10:28 +0000

[...] 20 Tax Deductions for Freelancers: This list goes over a number of deductions freelancers can make, including magazine subscriptions, health care, and bank fees. [...]

By: Matt R

Matt R — Sun, 09 Dec 2007 22:33:15 +0000

I think this would be a great time to turn my wishes into high gear and make my freelancing into a legitimate business, whether or not it is required for tax deductions.
What are the best steps to take there? I’m fairly fresh here, Deb, and you may have already covered this, but what steps are necessary to start up an official freelance biz?

By: Paula

Paula — Fri, 07 Dec 2007 19:59:54 +0000

A couple of items I bought in 2006
(computer, printer, softaware) but never claimed them on my taxes last year. Can I claim them for 2007 as long as I have the receipts?

Can I also claim deductions on fees to license and register my business? Thanks!

By: Lela

Lela — Thu, 06 Dec 2007 14:20:44 +0000

On the computer issue, I have deducted a couple of them. (It’s actually depreciation, but you can do it all in one year – even if you’re just a sole proprietor – just a freelancing individual.) The problem would be if you’re deducting a new computer every year. Or a game system, to relax between articles. Or a 60 inch plasma TV, to keep up with the news. It’s really not that tricky, you just need to be honest and realistic about what is needed for your work.

And be careful with deducting any home office expenses. Make sure you have professional guidance on that because it’s a tricky area and potential audit trigger.

By: Kat

Kat — Thu, 06 Dec 2007 04:01:19 +0000

Deb,

You are fabulous! Thanks for the business savvy information. It’s truly enlightening. I’m currently finishing up college and have decided freelance is the direction I’m going to take.

Your articles have definitely been a helpful guide in the direction I’m moving towards. Thanks for your time and knowledge.

Sincerely,
Kat

PS. Please enjoy the coffee! It came from my first freelance paycheck!

By: Laura

Laura — Wed, 05 Dec 2007 20:48:25 +0000

Great information! I bought my laptop for the sole purpose of work. While I may “chat” on it via other sites, like this, they are work related.

What I am about to say by no means is a way to get around this; but …. How are they going to know? If you are computer savvy and know your way around a hard drive, then their wouldn’t be anything showing up except for work files/correspondences. I just don’t get how they would ‘audit’ how you use your pc. Let me rephrase; I know how it can be done; but does the IRS really do that? lol I am afraid of them, so I do the legal stuff…rofl

By: Deb

Deb — Wed, 05 Dec 2007 15:37:50 +0000

I’ll say this, it’s handy being married to an accountant. I also learned a great deal from my mom who just retired from her job as an instructional designer. She wrote courses for accountants.

I’m no expert, but I believe Ann is right. If your computer is being used for work and only work it’s a write off.

Also, regarding the audit thing – don’t NOT use deductions because you’re afraid of an audit, but audits do catch the eye of the IRS over returns without a lot of deductions. The bottom line is to be fair and keep all receipts and paperwork.

By: Ann G.

Ann G. — Wed, 05 Dec 2007 14:09:47 +0000

This is what my accountant told me. If you have a set home office with a computer that is ONLY used for work and nothing else (no chatting to friends while working, no emailing family, etc.) you can deduct the depreciation of that computer, the electricity it uses, and that percentage of your internet bill. However, my house is too small for a home office, I work from my bedroom or living room depending on which computer I need to use. For that reason, she told me it would be next to impossible to deduct much of anything, so I don’t bother.

By: Phil

Phil — Wed, 05 Dec 2007 12:15:52 +0000

On the computer question: If it’s used for business, there is a deduction, but you may have to depreciate it over a few years. For a corporation like mine, you can write off something like $20,000 (not sure of actual figure) of capital expenditures in a year. Not sure if there are such limitations for sole proprietors (those who use schedule C). But even if you can write it off for tax purposes, it should be depreciated over time (typically three years) for bookkeeping so that one better matches expenses and income.

I know many writers don’t like numbers, but a couple of basic accounting books can be an invaluable reference, though they may or may not have tax info. IRS site is also helpful if you can cut through a lot of the wordiness.