If I am working as a freelance under my own name, what do I need to do so I can get a tax write off in CA?

Answer 1

You just need to track you expenses, if you buy paper, record it as a business expense, the more organized you are the better.

Also be aware that if you have losses in consecutive years the IRS may claim that you have a hobby and not a business and deny your deductions.

Answer 2

Your best bet would be to either get a book on small business accounting or talk to an accountant.

But...you don't get a write off for being self-employed. You will need to keep clean books of your expenses and your income. You may be able to deduct your computer and home office space, as well as any supplies you use, postage, phone lines, internet service, etc.

However, there are strict rules on what qualifies as a deduction against your income. Most of the time, those items must be used strictly for business. Some things, like a share of your rent or mortgage and utilities can be prorated, but only if you qualify for the home office deduction. To qualify, the space must be separate and defined and solely for business use.

All that info is available on the IRS website, but again, getting a book that describes taxes for the self-employed will help and an accountant would be easier.

You should know that you will have to pay self-employment taxes, which include social security and medicaid, and that equals 14.8% of your income. This is one more reason having an accurate accounting of your expenses is important. It will reduce your taxable income.

You need to do it write because the IRS just loves to audit the self-employed. You can be fined or put in jail for "fudging it."

So it really is important to do it right.

Note, seeing an accountant has a lot of value. For example, if you own your house, there are both good and negative consequences to taking the home office deduction, plus as a self-employed person you can put a lot more money away PRE-TAX for retirement.

Self-employed people need to be better at managing their money or need to pay someone else to.

Best of luck.

Answer 3

buy realestate as it is the best investment consedering you write off all your intrest. Your car, home office, office, travel, food (for more then one person), entertainment.... gosh you can write off anything your CPA will allow you too... please be aware that there are limits on everything so the best advice truthfully is to contact your CPA and have a meeting to set a business plan for the tax year.

Answer 4

anything you spend working as a feelance (i.e. lap top computer, paper, pen, supplies, gas to drive to the location) are write-offs.