Are You a Freelancer? These 9 Tax Deductions May Save You Money
- Home office.
- Home office supplies, equipment, and furnishings.
- Utilities, wireless and other related services.
- Insurance.
- Automobile expenses.
- Travel costs.
- Supplies related to your business.
- Marketing.
Can freelancers take the standard deduction?
If you’re self-employed and fit the requirements, you can claim the standard deduction, plus the qualified business income deduction, and also deduct eligible business expenses such as rent, professional fees, training and education, licensing and certification fees and supplies and travel costs.
How can I deduct freelance income from my taxes?
In case of cash payment, a receipt becomes mandatory. A certain percentage of your freelance income can be deducted as expenses incurred in doing the job itself. The expenses could be anything from furniture, electronics, tools, transportation and gadgets. However, these expenses should be directly relating to your profession or work rendered.
Can you deduct office supplies as a freelancer?
Freelancers (and small businesses) can deduct office supplies so long as they are “ordinary and necessary” (which is the IRS’s rule of thumb for all deductions). Be sure to save all of your receipts so that you can file your taxes properly at the end of the year.
What’s the best way to charge for freelance work?
It’s great to know how much to charge per hour, but as a freelancer, you’ll soon realise some jobs are better charged on a per-project basis (or a per-word rate, if you’re a writer). If it makes more sense for the job, tell clients how much a project will cost in its entirety, not how much time it will take you.
What are the freelance rates in South Africa?
There’s a way to make absolutely sure you’re on the right track. The latest report published by the South African Freelancers’ Association (SAFREA) includes the recommended freelance rates for all sorts of professions, from writing to graphic design to photography.
