Taxes are confusing for just about anyone. For some people, taxes are just more complicated than they might expect, and filing everything properly is difficult. However, issues when filing can snowball into much larger issues down the line. For freelancers, the following tips can make filing taxes easier and help them save more money in the long run.
Look Into the Home Office Tax Deduction
For those who work from home, the home office tax deduction can be a huge help. According to RealtimeCampaign.com, most people aren’t aware they can take the home office tax deduction or how much it can help them. This is typically easy to do, and most people who use part of their home exclusively for business can use this deduction.
Keep Careful Track of Freelance Income
Tracking income is not as easy for freelancers as it is for those who work a typical job. Freelancers Are Changing The Way We Do Business, and with these changes comes the need to track everything more carefully. Freelancers should keep careful track of every source of income throughout the year as well as the total amount so this information is easy to access when it’s time to do taxes.
Keep Track of All Deductions
Freelancers can use a lot of deductions to reduce their taxable income. Some of the most common deductions include office supplies, computer equipment, business travel expenses, and utilities. The home office is one of the biggest deductions for a freelancer to take, but they should look into all possibilities to save as much money as possible.
Keep Up With Quarterly Payments
Many freelancers will need to make quarterly tax payments. Those who make more than a few thousand a year will want to look into this as it can help them avoid having the full amount due at the end of the fiscal year. Additionally, it may be required by the IRS if they’re going to owe a sufficient amount of money when they file their taxes. Freelancers can check out this resource to learn more.
Get Help Before Filing the Taxes
Despite excellent record keeping throughout the year, filling out the appropriate tax forms for freelancers can be difficult. This is why many experts recommend that freelancers get help before filing their taxes. A professional like Dave Burton can help ensure everything is accurate and enable them to maximize their deductions to lower their taxable income. This could make a huge difference in how much they need to pay.
If you’ve just started freelancing, filing taxes might be difficult at first because it’s very different than someone who has a typical job. Follow the tips here to maximize your savings and to ensure you keep track of everything throughout the year. This will help make taxes easier. If you aren’t sure about taxes or tax-related topics, be sure to speak with a professional right away. They can answer any questions and make sure you’re ready to file at the end of the year.