Life as a Freelancer
“Life as a Freelancer”
There has never been a better time to embark upon your journey as a freelance professional. Whether you are pursuing the path, as we would say “all-in” or just simply as a “side hustle.”
The term freelance is defined as working for different companies at different times rather than being permanently employed by one company.
According to the IRS, freelancers are seen as self-employed for tax purposes, so if you generate income ($400 minimum) as a freelancer then you are required by law to file taxes as a business owner/ independent contractor.
Before you get overwhelmed with the thought of the tax filing process, understand that as a freelance professional, the out of pocket expenses that you incur can typically work in your favor around tax time.
Now that you have stepped into the freelance arena, marketing is key to getting your brand off of the ground. Expenses paid to fuel your marketing campaign can be revisited when you sit down with your preparer. The cost of designing, printing and/or even promoting your marketing material is a one up you have as a business owner when tax season arrives. Try not to look at this as an expense but as an investment. You have an idea; you promote it, that simple.
You can deduct a limited amount of start-up and organizational costs in setting up your business. The costs that are not deducted currently can be amortized over a specific period of time.
You are allowed to deduct the costs of traveling to work. Of course travel has to be solely work related to the field that you are in. This means that the family vacation to Disney World will not cut it this year.