Doing freelance writing jobs can be a very free working experience. You can set your hours, pick your jobs, and you enjoy what you write about. However, despite the advantages to being self employed, you’re still subject to taxation. You have to remember though that no matter how much of a hassle doing taxes is, there are still things you can consider to lessen the burden through tax deductibles.
- Supply expenses. As with any important office, you’ll need to resupply every so often. Since you probably write from home, supplies might constitute important software, paper and other standard office fare. These costs are considered by the IRS as an integral part of your business and can partly lessen your tax that year.
- Insurance and some personal expenses. While you are working alone, you will still need an insurance policy. If you already have health or property insurance, the IRS has a certain policy that allows you to use the interest rates as a taxable cost. In addition to that, some of your home utilities are considered office costs.
- Business expenses. Writing as a freelancer would usually require you to go to conventions. If you review music, or you critique movies, chances are you still need to attend gatherings or press conferences. Additionally, traveling, furthered education, and advertising can all be a part of your business expenditures. These costs can be considered a business expense, and therefore, you are able to count them as a tax deduction.
While it will take you a large part of your time to learn more, the extra cash you will gain from tax breaks can be worth it.