First year filing as a freelance writer, but I don't know what expenses to deduct, etc. Help!
2007-01-16 10:49:09 · 5 answers · asked by KND 5 in Business & Finance ➔ Taxes ➔ United States
As a sole proprieter, you can deduct all of the expenses related to your business. If you are working out of the home and have an office which is dedicated to your writing, then your largest deduction will likely be for expenses related to your home office. You can also deduct paper, pens/pencils, and other office supplies, as well as your home computer (or at least a portion of it), possibly your internet service provider fees if you use the internet to research or publish, mileage on your car if you have travel related to your business, plus any professional licensing fees (or fees paid to your publisher), magazines or books used for research, etc., etc. It may pay to have a professional review your taxes to ensure that you didn't miss anything big, or you can use TurboTax (or similar) and check the IRS publications for any items that you have questions on. TurboTax does a pretty good job and explaining relevant topics like deductions with both text and audio/video episodes at relevant points while filling out the forms. I have used it for years.
2007-01-16 11:06:06 · answer #1 · answered by Carter 3 · 1⤊ 0⤋
Lets see....computer - did you use it for business more than 50%? Do you work from home? Presumably you had car expenses. If you did not keep full expense records you can do it based on mileage records. No records - no deduction. You will be able to deduct 50% of your meal expenses and all of your hotel and other travel expenses. Any supplies used exclusively for your work can be deducted too.
Why not get an appointment with a CPA? It needn't cost much and you might save more than you think. Anyone on this board can only give general advice. It is much better to sit down with an expert and talk things through.
2007-01-16 10:55:48 · answer #2 · answered by skip 6 · 1⤊ 0⤋
You pay tax on ALL the sites, whether they ask for tax info or not. You must report the income if you made over $400 total freelancing for the year from all sources, if the freelancing was your only income. But if the retail job was in 2012 too and you're filing a return for that, you have to report the freelance income from the first dollar on that same return.
2016-05-23 22:11:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You'd be wise to see a CPA or enrolled agent at least for this first year, to understand what you can deduct and how to file your taxes.
2007-01-16 14:54:00 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
did you get that big fat book from the IRS
turn to the page that says schedule C
2007-01-16 11:05:31 · answer #5 · answered by edoubleyou 4 · 0⤊ 0⤋