If you’re self-employed and meet certain conditions, you may also be able to write off health insurance premiums for yourself, your spouse and your dependents. Premiums for liability, malpractice and other types of insurance for your business may be deductible. If either option would work for you, pick the one that will give you the better tax deduction. Generally, you can choose one of two methods to deduct vehicle expenses: the standard mileage rate ( 65.5 cents for each mile driven for business in 2023) or actual documented expenses. Car Costsįreelancers may be able to deduct expenses for a vehicle used for business, including depreciation, lease payments, gasoline, tires, insurance and registration fees.īut there’s a caveat: If you use your car for both personal and business purposes, you’ll have to calculate the percentage of use that’s strictly for business, because the IRS will allow you to deduct only business-related expenses. You could either deduct the cost of the equipment all at once or depreciate a larger asset, like a computer, and claim those costs over time. The cost of supplies and equipment-such as laptops, printers, books and other items-may also be deductible. The cost of running ads, designing your website and keeping it up and running may be tax-deductible as long as the expenses are essential for your business. Advertising, Marketing and Internet-Related Expenses Here’s a breakdown of the top deductible expenses for freelancers. To qualify for a tax write-off, a business expense must be “necessary and ordinary,” the IRS says-meaning it must be a normal and appropriate cost for a business. This means even part-time drivers for ride apps and others who work in the gig economy may be able to deduct expenses for gas, car maintenance, phone service and more. “It is common for food delivery apps like Uber to use the independent contractor structure for its drivers,” says Eric Bronnenkant, a certified public accountant (CPA) and the tax expert for the robo-advisor Betterment. And you don’t have to run a full-fledged business operation to qualify for the deductions. On Cash App Taxes' Website What Are Freelancer Tax Deductions?įreelancers and independent contractors can deduct certain business-related expenses from their income to reduce their tax liability.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |