The key thing to understand is that if you spent the money in pursuit of freelance profit, it counts as an expense with only a few exceptions. In other words, did buying that thing or paying for that service impact your work? Here are a few examples to help you out with this:
- You’re a painter and went to the store to get some canvases, paint, and pencils. Awesome, we look forward to seeing what you do with it, and yes, that’s a legit business expense.
- You’re a designer and illustrator who connects with clients and sells your illustrations on the web. Fantastic! Your internet costs are deductible.
- Your pet salamander keeps you company in your home office, but is a really picky eater, so you have to import special food for them from Mozambique. Alas, this one is a no. Sorry salamander.
Once you’ve got a rough sense of what your expenses are, just do the best you can when you’re filling out our online form. During your tax appointment our preparers can answer any questions you have about specific expenses, and verify that everything is on the level. We just want you to put what you’ve got into the system so that we have a place to start from, to help guide the conversation and make the best use of your time.
You can also some helpful information about what kinds of things our clients often have as business expenses in our freelancer 101 packet.
Get started on your taxes today by signing up for an account with Brass Taxes.