How To Get More Money Back On Your Taxes: A Guide For Freelancers 1 Did you recently start a freelance job that allows you to work from home and be in charge of your own schedule? Are you unsure of how this affects the taxes that you have to pay? If so, then it’s important for you to know the best ways to pay taxes while still keeping a reliable amount of money in your pocket. While the IRS requires that you pay taxes even if you don’t work for another person or company, this doesn’t mean that you’ll have a harder time in this area than regular employees. All you need to do is keep an eye on any potential expenses required for your job, as well as document them for when you need to pay taxes. Without our knowledge of finances, you’ll be able to get paid back for what you spend on your job while enjoying the flexibility and freedom of remote work. Follow this guide for freelancers so that you know how to get more money back on your taxes. Calculate Deductible Business Expenses Despite not having to go to an office for your job, you’ll still have to spend money in order to stay on track with assignments and do as much work as possible for your best return. That is why one of our tax tips for freelancers is to deduct certain expenses from your taxable income. These expenses come in different forms, such as advertising, physical supplies, software, insurance, and furniture you need to do your job. Whatever you use, even if it’s personal, to do your work can be included so that you can reduce your tax liability. You can also include the use of your car as a deductible expense, such as how much you spend on gas, how much you have to travel to certain places to do work. We also recommend considering any money you have to spend on anyone who lives with you, especially if it relates to your job. Claim Home Office Tax Deductions One of the benefits of working from home is not having to wake up early and get stuck in traffic in order to get to an office out of town. Freelancers can use their home as their station of work, whether they want to work on comfortable couches and beds or use a specific room as your office. When it comes to how to get money back on taxes, you can focus on home office tax deductions so that you can save money on your returns. Whatever part of your home that you use to do work must be used specifically for your business on a regular basis, and your home must be the principal place for your business, according to the Internal Revenue Service. The way you use your home must also be convenient for employers, such as if your company doesn’t have a local office or enough space for you […]
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