FREELANCERS UNION BLOG

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March Spark Highlights: the tax tips you missed

At last night’s March Spark event, freelancers across the country worked together to ask and answer their most burning questions about tax season. Not since middle school have we seen so many people in one room furiously scribbling in notebooks instead of Macbooks!

Sparks in Brooklyn, Chicago, Portland and more hosted CPAs who spoke to freelancers’ concerns directly, while attendees in Atlanta, Jersey City, Seattle, and San Diego participated in a live webinar with Jonathan Medows of cpaforfreelancers.com.

Here’s some important advice that Jonathan shared:

The top deductions that freelancers often miss

- Transportation: Expenses related to getting to and from meetings (even if you work at home)

- Technology: Your phones, laptops, and everything you use for business can be expensed. If you use your laptop for business and personal, you can apportion the time you use for business!

- Home office: Any space in your home that is designated exclusively for work-related activities

- Health Insurance: If you make a profit through self-employment and you aren’t eligible for any form of health insurance, you may be able to deduct up to 100% of the cost of health insurance premiums

Get started early! And be proactive in managing your expenses

Don’t wait until April 1st to start thinking about your taxes. Tuck away 30% of your earned income in a separate account (a separate, non-business savings account is fine). Keep records and proof of business expenses, including photos of your workspace! (Handy if you move.) Start to make quarterly estimated tax payments so you're not on the hook for a large expense at the end of the year.

If you work for a client out of state

You are responsible for paying taxes in the state where you work, and the state where you live. If you have an overseas client who doesn’t give you a 1099, you are still responsible for paying taxes on the income you earn!

Don’t miss our next Spark on April 1 “How to Get Paid On Time… All of the Time”. Click here to RSVP.

Sharon Bruce At Freelancers Union, Sharon creates opportunities for freelancers to meet, greet, and learn. Find her @sharonlikestone or at the nearest bakery.

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