What Freelancers Need to Know to Maximize Their Write Offs During Tax Time

Most freelancers hate when it is time for them to do their taxes. Self-employment comes with many benefits yet one of the major downsides is having taxes that are more complex. However, today we are discussing how you can make doing your taxes more manageable.

Keep Your Paperwork Organized to Avoid Stress

It is important that you keep all of your important documents organized throughout the year. When tax time comes, they should be easy to access to make filing your taxes easier. The good news is there are numerous tools available to help make storing your documents easier such as Dropbox and QuickBooks.

QuickBooks is one of the recommended programs because you can keep everything organized under one system. However, if you are not a fan of the software you can talk with your colleagues to see how they keep their documents and receipts organized until it is time for them to file taxes.

Paperwork that You Need to Keep

If you want to make sure that you are able to claim the maximum amount of deductions it is important to make sure that you keep specific documents. Some of the main things that freelancers need to keep are as follows:

  • Proof that you use your home for business – You will want to make sure that you keep track of all documents and expenses that you have for running your business out of your home
  • Vehicle expenses – If you have to travel to an office or use your vehicle for other business related tasks you need to keep track of the mileage you put on your car for business
  • Equipment – Your laptops and other business equipment that you use exclusively for business can be written off doing tax time. You can either write off the entire expense or the depreciated amount.
  • Educational Expenses – If you took classes to further your expertise you can write off the prices of the courses taken when tax season rolls in.
  • Website Expenses – You can write off the cost of your website design and hosting fees.

Closing Thoughts

In addition to keeping track of your deductions, you also need to make sure that you are aware of the credits that you are eligible for. Whether you have been freelancing for less than a year or for numerous years it is important to try to maximize your write offs to keep more of your hard-earned money in your pocket.

When you make the decision to file with H & R Block you can be confident knowing that they are going to get you the maximum amount of money in the form of a tax refund and they are going to charge you as little as possible when you use the H & R Block discount coupon.

The sooner you file your taxes, the more likely it is that you can find a discount coupon that allows you to get the maximum amount off your tax preparation fees. The later you file, the lower the discount coupon is going to be. Therefore, it is recommended that you seek out H & R Block’s assistance as soon as possible to save yourself the maximum amount of money.

 

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