| Good News: Being a freelance worker actually gives | | | | -Rent or lease for business property |
| you tax advantages other professions don't have. You | | | | -Legal and professional services (like hiring a tax |
| are in control of your tax situation and you can reduce | | | | professional or an Attorney) |
| current income by any losses you have from | | | | -Cost of Supplies |
| freelancing. But don't get careless with that power. The | | | | -Cost of Utilities |
| IRS knows the tax benefits of being self-employed. | | | | -Repairs and maintenance |
| They are going to be looking closely for suspicious tax | | | | -Qualifying classes and seminars |
| returns. | | | | -Applicable business travels |
| Accountants: The IRS doesn't care if you're too busy | | | | Tax Reporting: Freelance workers use Form 1040 |
| to do your taxes and paperwork. No matter what, | | | | schedule C to list all their profits and losses. |
| they will be due every year. So what can you do | | | | Working for Yourself: You're skilled at what you do. |
| when you have too much on you plate to take on the | | | | You could be a construction worker, a photographer, |
| IRS? Hire an experienced Accountant to do the work | | | | an artist or a mechanic. You live life marching to your |
| for you. Fees will vary, and you might think hiring one | | | | own drummer and doing what you love. But you can't |
| will be too much for your budget. But the money you | | | | ignore your IRS burden. When you work for yourself, |
| pay an Accountant is almost guaranteed to be far | | | | the IRS still wants a cut of your profits. If you don't pay |
| less than the money you pay the IRS in fees and | | | | up, you'll wind up in debt. It's understandable that you |
| penalties. | | | | have little free time to work on your finances on top of |
| Deductions: Being a freelance worker entitles you to | | | | everything else. So be smart, hire some professional |
| make your own business deductions. Here are a few | | | | help if you need it. |
| things that qualify: | | | | |