As a freelance writer, I am an independent contractor, or sole proprietor of my own business. However I choose to look at it, it all boils down to this- when it comes times to do taxes, if I don’t use any deductions, I can end up owing way more money than I’d like. And as a freelance writer, there are a great number of things that are tax-deductible year after year. Here are the most common tax deductions you can use as a freelance writer.
Your home is your office, so take your office and use it as a tax deduction. As a rule, whatever size your office is in comparison to the rest of your house is your deduction. My living room is approximately 20% of my home’s entire square footage. What does this mean? I can use 20% of my utility expenses (such as rent and electricity) as a tax deduction. Since 80% of my internet is dedicated to freelance writing, I can use that as a tax deduction as well.
As a freelance writer, you have equipment that you have to buy or replace. Printer ink, a new laptop, paper, pens, a desk, a chair, etc can be used as a tax deduction if you bought them during the year you are filing taxes for. Even your cell phone can be a tax deduction (up to a certain percentage) if you use it for interviewing or other freelance writing business.
Do you go out to eat and then write about your experience as a freelance writer? Your entertainment and dining (and even your gas for traveling to interview or review) can be written off as well, based on percentages used for business. I use my car 20% of the time for business purposes, so I use that for a tax deduction as well.
Essentially, anything that costs you money that you attribute to your business, you can get a tax deduction for, within reason. When you have a 1099 to worry about, you need all the tax deductions you can get, and you’d be surprised how many tax deductions you can have as a freelance writer.
Not sure how to do your taxes? You can use a tax preparer to help you file your taxes and get you the maximum refund possible for you. However, you can also use online tax services, like H&R Block to do your 1099. This is what I did, and I made out very well last year.
Don’t sell yourself short as a freelance writer. Keep track of your business expenses and receipts, and make sure that you get the most out of your tax deductions. Just because you are a freelance writer doesn’t mean that you don’t own your own business, at least to the IRS.
Sources:
filing my own taxes
H&R Block reps