Freelance Writing and Self-Employed Tax Deductions
Intro
If you’re a freelance writer you know tax season is here. You have probably already received some 1099 forms in the mail for the work you have completed throughout the year. Taxes are always daunting, but deductions help lower the amount you owe or get a tax return.
45 Freelance Writing Tax Deductions
- Books bought for research or education
- Office Furniture
- Business Phone Line
- Stamps and Envelopes
- Business Banking Fees
- Advertising
- Website Hosting and Domains
- Printer
- Computer
- Internet Connection
- Magazines
- Business Trip Costs
- Business Meals
- Health Care
- Professional Organization Membership Fees
- Gas Mileage for Business Trips
- Software for Freelance Writing
- Home Office
- Cost of an Office
- Fax Machine
- Scanner
- Printer Ink
- Paper
- Pens
- Notebooks
- Camera for Article Photos
- Online Subscriptions for Freelance Writing
- Accounting and Tax Filing Fees
- Writing Conferences
- Writing Retreats
- Networking Group
- Babysitting or Daycare Costs
- Business Clothing
- Agent Fees
- Copyright Fees
- Business License
- Business Registration
- Writing Contest Fees
- 401K Contributions
- Subcontracting Fees
- Brochures
- Press Releases
- Business Cards
- Flyers
- Promotional Products
Filing Your Deductions
The Schedule C 1040 form is the self-employment tax form. You will see that in part 2 of Schedule C is where you need to list out your freelance writing tax deductions. There are categories for your deductions, so it is a good idea to prepare for that throughout the year. In your ledger or on the receipt note what kind of expense it is so you won’t have to go back and categorize them all at tax time.
Self-Employment Tax Rate
Self-Employment taxes is 15.3% of your income. For example, if you made $1,000 last year (writing’s my specialty, not math) you would owe $150 in self-employment taxes to the Internal Revenue Service (IRS). To calculate your approximate owed taxes multiply your income by 0.15. The sum is about what you owe.
Pay Freelance Writing Taxes Quarterly
It is recommended that you save this percentage of your freelance writing income and pay it on a quarterly basis. When tax time rolls around you won’t owe that much and (depending on how much you make and what you qualify for) you should get a tax return.You need to use Form 1040-ES to file quarterly estimated taxes.
Keep Good Records
Save all of your receipts for business expenses. If you buy something online print out a receipt and put it away. Keep records of your income and expenses in a ledger so when tax time comes around you will be prepared. Use a small file box for your freelance writing taxes to file and save all of your tax records. That way you will have everything in one place. In your ledger keep sums of your gross income, expenses, and net income for the month, quarter and year. Make it a habit to brush up your ledger on a regular basis so when tax time comes around you are not completely overwhelmed.