Income & Expenses

Do I have to report all my income? Which income should I include in my freelance income?

Short answer: You are legally obligated to report all of your income.

I’m self-employed, but didn’t get a 1099 from everybody. Is that OK?

Every person or company you worked for may not issue you a tax form.

What's the difference between a W-2 and a 1099?

These are two of the most common tax forms that outline your income for the year. Below is a quick overview of what they are.

Why should I keep track of my expenses?

If you're a freelancer, you definitely want to keep track of your expenses. Here's why.

What counts as a business expense?

Knowing what is considered a legit business expense is very important for everyone who is self-employed. Make sure you understand the basics.

What info does Brass Taxes need about my expenses?

Check out our handy Expense Tracker!

Keeping track of your expenses can be a chore, but this expense tracker will make your life a little bit easier.

What if I don't have receipts?

You’ve heard people talk about collecting receipts. Or maybe you even have some receipts, but then there are some you don’t have. What are the consequences? Why do freelancers need these little pieces of paper?

Is it true that I can deduct meals as an expense?

Getting food or drinks with clients or while traveling is often a legit business expense, but be mindful of the rules.

Can I claim my internet service cost as a business expense?

Figuring out all your business expenses is a key part of doing your taxes as a freelancer, and internet costs are usually a part of that.

What are freelance research expenses?

Staying on top of your field is crucial to your success, and in many cases the costs associated with that are legitimate business expenses.

What qualifies as a home office?

Figuring out if you have a home office is an important question for freelancers, artists, and others who regularly work from home. But it’s not always easy to understand what qualifies. Find out more below.

Can I deduct medical expenses?

The short answer is, sometimes. It's only be relevant if the total amount that exceeds 7.5% of your income, and you have itemize (meaning you have a lot of "personal" expenses like real estate taxes, charitable contributions, mortgage interest, along with medical expenses).

How big is my home office?

If you have a home office used exclusively and regularly for your freelance business, it often represents a pretty big business expense which can help a lot when it comes to your taxes.

How do I track mileage?

If you use your vehicle for business, you definitely want to track your mileage and other costs associated with business. It will help bring down your tax bill.

What the heck are per diems? And how can I use them?

Per diems are your friends! Tracking the cost of meals when you're traveling can be a pain. Thankfully, there's are some tools you can use to make this easier.

What is depreciation? (a.k.a. Why are you asking me about big equipment purchases?)

If you bought costly equipment for your business, like a new phone, computer, or camera (or all three and more), depreciation is a handy tool that can benefit you not only this year but in future years.

What expenses can I take for my car other than mileage? What if I drive for Uber or Lyft?

If you drive a car, truck, or SUV for business purposes, chances are you can deduct a percentage of your auto expenses.

Why are you asking me about merchandise or inventory? And how do I fill that section out?

The government sometimes gives us ways to push large expenses forward to future years, and this can be really handy for people who sell merch and other goods they have to manufacture. The IRS refers to it as the cost of goods sold. Below we'll help you figure out if this applies to you.

What do I do about all the money I spend on my W2 job?

Just because you get a paycheck doesn't mean you don't end up having to pay for expenses for your W2 job, especially if you end up working lots of W2 jobs in the year. What's the deal with all they money, can it be claimed as an expense?

Business Expense Categories & Examples

Need help categorizing your expenses? This page is a TL;DR of the expense categories on our expense tracker and on our website.