Tax Deductions for Freelancers Part 2
We’ve already discussed some very basic tax deductions freelancers can make – whether you are a consultant, coach, web designer, or blogger. We’ve also discussed some of the more overlooked tax deductions these individuals can claim in order to make tax time less hectic.
Now, we’re going to look at a few more deductions, so that you can start saving those receipts and be prepared by the time the tax man comes around.
Image by Ben Hosking
Professional Memberships
Many freelancers pay for professional memberships such as guilds or unions. These memberships may provide health insurance, important industry news, and leads while giving the freelancing professional more credibility in their craft. In case you haven’t noticed, some of these dues are very expensive depending on what the membership offers. As a result, make sure to keep receipts or charges of membership dues so that you can claim a deduction.
Travel Expenses
You can’t deduct vacations but you can definitely deduct any travel that is required for business. This includes conferences, doing work for a client, meeting a potential client, or doing research.
Health Insurance Costs
Chances are that if you run your own business that you may also be responsible for your own private health fund membership. For those of you who do pay for your own private healthcare you know how expensive it can be. Do your wallet a favor and make sure to deduct the cost of healthcare coverage when tax time comes around.
Office Supplies
Paper, printers, ink, envelopes, file folders, pens, paper clips, you name it – if you purchase it directly for your business it is tax deductible.
Advertising Costs
Advertising is not cheap regardless of which means you use. Whether you use Facebook Ads, Google Ads, private ads on websites, or the newspaper you can consider it a business expense that is tax deductible.
Marketing Materials
Printing is expensive. Really expensive. If you hired someone to print business cards, flyers, brochures, or any other marketing materials make sure to keep the receipts and deduct them from your taxes.
Magazine Subscriptions
Magazines within your industry can be considered tax write – offs. For instance, if you are a freelance writer you can deduct the cost of writer’s magazines like Writer’s Digest. Again, it may not seem like a huge expense but these things do add up over time.
Meals or Drinks With Colleagues or Interview Subjects
Yes, the coffee shop meetings are tax deductible – so long as it has to do with your business. Keep the receipts and make a note on them that explains what the expense was for.
Cell Phone Bills or Skype Calls
If you use your cell phone of Skype messenger primarily for business than it can be considered a tax write – off. Note that typically your first land line cannot be considered tax deductible but any line after that can.
Professional Advice
Did you hire a coach or consultant? Did you need to seek the services of a lawyer or accountant? Write off the expenses. Documenting these expenses just requires a receipt or invoice.
Be prepared come tax time and document whatever expenses you can write off. If you have any questions or concerns make sure to consult an accountant – and then deduct the cost of asking them.
Related posts:
- Tax Deductions for Freelancers, Part 1
- 5 Overlooked Tax Deductions for Freelancers
- 10 Tax Deductions for Bloggers
Category: Work
