Comments on: Tips, tricks, and tax deductions for freelancers http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/ travel culture worldwide Wed, 08 Feb 2012 22:53:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Cat5 KVM http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-103017 Cat5 KVM Fri, 03 Feb 2012 11:11:00 +0000 http://matadorlife.com/?p=4653#comment-103017 Very interesting presentation I’ve got here with some useful tips. I find it important to note that unless your business expenses exceed a certain percentage of your adjusted gross income you can't deduct a thing!   Very interesting presentation I’ve got here with some useful tips. I find it
important to note that unless your business expenses exceed a certain
percentage of your adjusted gross income you can’t deduct a thing!
 

]]> By: Washington State Tax Filing 2010 http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-55961 Washington State Tax Filing 2010 Sat, 02 Oct 2010 08:26:32 +0000 http://matadorlife.com/?p=4653#comment-55961 Amazing post really I like this post. E filing is the best option for file your Washington state taxes and federal tax return filing and gets fast tax refund from online for 2010 taxes. But I want to know latest rate structure. Amazing post really I like this post. E filing is the best option for file your Washington state taxes and federal tax return filing and gets fast tax refund from online for 2010 taxes. But I want to know latest rate structure.

]]> By: Lauren Quinn http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54542 Lauren Quinn Sun, 11 Apr 2010 08:46:32 +0000 http://matadorlife.com/?p=4653#comment-54542 I got my taxes done for the first time this year, as a freelancer. Amazing! I wrote off all my travels for the last year, plus my internet connection, conference fees, and other fun things. Two things I learned: 1) you don't have to choose between a standard deduction and itemized ones, like I thought. It's not an either/or; I claimed my self-employment (freelancing) income, minus expenses, in addition to my W-2 and the good old standard deduction everyone gets. 2) You don't necessarily have to save receipts. It's better to, but I hadn't planned ahead and didn't have any for my longest and most expensive trip. As long as you have a record or log to prove your travels (such as a blog), you can use per diem rates, which are insanely higher than any backpacker budget. I cut the maximum per diem rate allowed in half for every destination I went to, and it worked out about right. I got my taxes done for the first time this year, as a freelancer. Amazing! I wrote off all my travels for the last year, plus my internet connection, conference fees, and other fun things.

Two things I learned:
1) you don’t have to choose between a standard deduction and itemized ones, like I thought. It’s not an either/or; I claimed my self-employment (freelancing) income, minus expenses, in addition to my W-2 and the good old standard deduction everyone gets.
2) You don’t necessarily have to save receipts. It’s better to, but I hadn’t planned ahead and didn’t have any for my longest and most expensive trip. As long as you have a record or log to prove your travels (such as a blog), you can use per diem rates, which are insanely higher than any backpacker budget. I cut the maximum per diem rate allowed in half for every destination I went to, and it worked out about right.

]]> By: Peter Winterble http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54495 Peter Winterble Fri, 09 Apr 2010 20:24:05 +0000 http://matadorlife.com/?p=4653#comment-54495 "Business entertainment" as relates to freelancing is usually only partially deductible, and it seems the IRS changes the rules every year. You need to check in the IRS instruction booklets or search irs.gov online to find out the amount of such expenses you can deduct. You normally can't deduct, for example, friends of yours or friends of the person you are interviewing; only you and the person you are writing about, photographing, video-ing, or whatever. When I was actively freelancing I usually avoided entertaining anyone since it was money I had to spend. If the subject wanted to pay, fine! I didn't even interview people at coffee shops 'cause I didn't want to be out the cash. Also, if you're going somewhere on vacation and can figure out a legitimate freelance job to do while you're at your destination(s), a percentage of your trip can be deducted, but again, one has to be careful because the IRS is very wise to such things. Overall, though, if you are not a high-end client of the IRS (making more than $100,000, for example), the agency usually won't fuss with you because it costs them more money to get another two or three hundred tax bucks out of you than the amount they want to recover. “Business entertainment” as relates to freelancing is usually only partially deductible, and it seems the IRS changes the rules every year. You need to check in the IRS instruction booklets or search irs.gov online to find out the amount of such expenses you can deduct. You normally can’t deduct, for example, friends of yours or friends of the person you are interviewing; only you and the person you are writing about, photographing, video-ing, or whatever.

When I was actively freelancing I usually avoided entertaining anyone since it was money I had to spend. If the subject wanted to pay, fine! I didn’t even interview people at coffee shops ’cause I didn’t want to be out the cash.

Also, if you’re going somewhere on vacation and can figure out a legitimate freelance job to do while you’re at your destination(s), a percentage of your trip can be deducted, but again, one has to be careful because the IRS is very wise to such things.

Overall, though, if you are not a high-end client of the IRS (making more than $100,000, for example), the agency usually won’t fuss with you because it costs them more money to get another two or three hundred tax bucks out of you than the amount they want to recover.

]]> By: Michelle http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54304 Michelle Tue, 30 Mar 2010 16:58:54 +0000 http://matadorlife.com/?p=4653#comment-54304 Seriously helpful article - thanks! Seriously helpful article – thanks!

]]> By: Bryan @ Tourfolio.com http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54303 Bryan @ Tourfolio.com Tue, 30 Mar 2010 15:55:41 +0000 http://matadorlife.com/?p=4653#comment-54303 @ Candice - Good luck with that! Haha. I worked for a few weeks in Montreal in 2008 and received tax forms from them (after I already filed my US taxes), and was completely dumbfounded by the amount of 'boxes' that I had to check, especially the ones asking me if any part of my job involved cutting down trees or fishing... @ Candice – Good luck with that! Haha. I worked for a few weeks in Montreal in 2008 and received tax forms from them (after I already filed my US taxes), and was completely dumbfounded by the amount of ‘boxes’ that I had to check, especially the ones asking me if any part of my job involved cutting down trees or fishing…

]]> By: Nick Rowlands http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54329 Nick Rowlands Tue, 30 Mar 2010 15:55:20 +0000 http://matadorlife.com/?p=4653#comment-54329 Wow, you can deduct food too? @ Candice - I hear you! I think I know more about US taxes now than British ones! Wow, you can deduct food too?

@ Candice – I hear you! I think I know more about US taxes now than British ones!

]]> By: Wes Masters http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54335 Wes Masters Tue, 30 Mar 2010 15:28:09 +0000 http://matadorlife.com/?p=4653#comment-54335 One thing to add about extensions: your best option is to file an extension online. That way you're guaranteed to get a response from the IRS and can re-file if your request was rejected. If, on the other hand, you choose to send the IRS your request through the mail, you will never hear anything. That means it may never get to the IRS or it could be rejected. That will mean you're accumulating late filing penalties without even knowing it. One thing to add about extensions: your best option is to file an extension online. That way you’re guaranteed to get a response from the IRS and can re-file if your request was rejected. If, on the other hand, you choose to send the IRS your request through the mail, you will never hear anything. That means it may never get to the IRS or it could be rejected. That will mean you’re accumulating late filing penalties without even knowing it.

]]> By: Candice http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54334 Candice Tue, 30 Mar 2010 14:57:51 +0000 http://matadorlife.com/?p=4653#comment-54334 Oh man, we need a Canadian version now. Oh man, we need a Canadian version now.

]]> By: Heather Carreiro http://matadornetwork.com/life/tips-tricks-and-tax-deductions-for-freelancers/#comment-54333 Heather Carreiro Tue, 30 Mar 2010 14:25:45 +0000 http://matadorlife.com/?p=4653#comment-54333 Good tips. You can also deduct a percentage of food and entertainment costs associated with your work. Good tips. You can also deduct a percentage of food and entertainment costs associated with your work.

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