Can Health Coaches Claim Groceries on Taxes?
Taxes are an inevitable part of every freelancer’s life, but there are several deductions that can help reduce your tax burden. As a health coach, you advocate a healthy lifestyle and help people level up their fitness journeys. As a self-employed health coach, you can deduct everything from travel, meals, vehicle, and transportation costs, to fitness equipment, home office equipment, and ingredients like chia seeds. The latter sounds odd, doesn’t it? The food you eat at home is generally not
Home office tax deduction for artists
Taxes are an inevitable part of every American’s life, however, there are some extra steps when you’re self-employed. As a freelance artist, you need to file both state and federal taxes, as well as 1099 forms. Taxes can get burdensome, and freelancers often overpay their taxes. However, there are several tax deductions available for self-employed artists — painters, makeup artists, illustrators, DJs, Etsy sellers, graphic designers, animators, and more. Some of the categories you can deduct in
Does home office deduction lead to an audit risk?
For most taxpayers, the home office deduction can be complicated. Plenty of people contemplate claiming the deduction since it has a lot of perks. However, a lot of taxpayers fear that the deduction isn’t worth the risk since it could trigger an IRS audit. Let’s clear the air, the home office deduction is a legitimate business expense [https://flyfin.tax/blog/is-working-from-home-tax-deductible] that qualifying homeowners and renters should not ignore. Now, in order to qualify for the deducti
How can FlyFin help me with my quarterly taxes?
Paying your quarterly estimated obligations and tracking your business expenses is vital to staying on top of your taxes. Many freelancers struggle with their quarterlies — over 53 million people in the US are freelancing and 75% are overpaying on taxes. This is because they don’t consider deductions while calculating their expenses. Can you believe that three-fourths of freelancers are overpaying their taxes? Claiming business deductions can be confusing with the already tedious tax process,
Why Should I Make Estimated Tax Payments?
A lot of people envy the freedom of freelancing, but not the taxes involved with it! If you’re self-employed, an independent contractor, or have substantial non-wage income, then you'll need to make estimated tax payments to the IRS to avoid penalties and interest. Because freelancers don’t have employers to withhold their taxes, they have to make quarterly tax payments. These taxes are used to pay: * Federal Income tax * State income tax * Self-employment taxes * Social security * Medica
How To Deduct Education Expenses?
If you decide to further your education to benefit your business, you can write off your education expenses. However, you must be able to prove the education maintains or improves skills required in your trade or business, or that it is required by law or regulations, for keeping your license to practice, status, or job. In other words, If you undergo a course or take classes to get certifications in your field or to enhance your business knowledge, you can typically write off those costs. What
Introduction to quarterly taxes for artists
Artists excel with imagination, but you can't take creative liberty when it comes to taxes. As a DJ, Etsy seller, or freelance designer, you need to file both state and federal taxes, as well as 1099 forms. Generally, artists file a “Schedule C” as part of their regular 1040 income tax form, which is where they report their art income and expenses. They may file a form 8829 for the home office (studio) deduction and which will also require them to pay self-employment tax (Schedule SE) on their
Is Paying Quarterly Taxes Mandatory?
The tax system in the US works on a pay-as-you-go basis, so the IRS collects income taxes throughout the year via payroll taxes. Ideally, when you file your tax return, you have already paid all of your taxes by the April deadline. Most people overpay their taxes [https://www.xero.com/content/dam/xero/pdf/TaxTouch-Report.pdf], which is why they get a tax refund from the IRS. If you underpay, you will face a penalty when you file your return. As a freelancer, you don’t have an employer to withho
Can travel bloggers write off exotic vacations and fancy meals?
The life of a travel blogger is often envied by most people. As a viewer, it seems like travel bloggers live the ideal life where they can write off exotic vacations and fancy meals, however, the reality is a lot different. Blogging as a profession is something of a gray zone when it comes to taxes. The IRS has very specific guidelines determining the difference between a hobby and a business: * Your business must be profitable. If you go three years in a row without turning a profit on
Let's talk about deductions
Being self-employed has a lot of perks- you get to choose and make your own decisions, you choose your working hours, and you get to follow your passion. So, if you’re thinking about becoming a self-employed worker in the US, it is advantageous to have an overview of trends, and statistics about self-employment. According to the most recent US Bureau of Labor Statistics (BLS) reports, there are over 9 million self-employed workers in the US. With the rise in self-employment, many taxpayers are
Top 15 tax deductions and benefits for the self-employed
As a self-employed business owner, you have probably pondered about ways to reduce your self-employment taxes. Most freelancers struggle with their taxes because every industry and career involves a different set of deductions. Unfortunately, the IRS doesn’t exactly provide a list of small-business tax deductions for every profession. However, it provides self-employed individuals with the ability to seek deductions on anything which is considered “ordinary and necessary” to run your business.
Are work-related devices a tax write-off?
Over the years our reliance on technology has increased exponentially, especially related to conducting business. During the 2019 tax reforms, it was proposed that salaried (W-2) employees can no longer claim job-related deductions. However, this rule does not apply to self-employed workers. If you are self-employed, there are several work-related devices you can claim as a tax write-off. Mobile/Cell phone If you own a cell phone and use it exclusively for business purposes, the cost of the ph
Are business networking apps tax deductible?
Making your name as a self-employed individual comes with several challenges, one of which includes building a network of people around you. While meeting new people can be difficult, it can be extremely beneficial to your business. Whether you decide to build your network through a digital platform or by going to in-person meetings, check out the following article to learn how to expand your network. Video conferencing Video conferencing software is essential in today’s work environment, and
Tax tips for direct sellers
Working as an independent consultant or direct seller has become immensely popular in recent years. The IRS categorizes direct sellers as one of the following: * An individual who sells consumer products at home or a place of business other than a permanent retail establishment * An individual who sells consumer products on a deposit or commission basis * An individual who delivers and/or distributes newspapers or shopping guides Direct sellers have a few things in common. Their income i
Is working from home tax deductible?
The year 2020 witnessed an explosive number of individuals working remotely because of the COVID-19 pandemic. However, most self-employed individuals have long since operated their businesses from the comfort of their homes. According to the U.S. Census Bureau and the Bureau of Labor Statistics, over 4.7 million people, which makes about 3.4% of the US workforce, were already working remotely before the pandemic. So, if you are self-employed and primarily work from home, you can apply for a de
Calculation over estimation, and why is it important?
As a freelancer, it is important to stay organized and to keep a track of all your expenses. However, most freelancers do not take deductions into account which often leads to overpayment. To learn about these deductions, read the article.
What's the deal with quarterly estimated taxes?
Taxes for freelancers are excruciatingly taxing, unlike the W2-employees who have their taxes withheld when they get paid. Thus, freelancers have to make estimated tax payments (1040-ES) on a quarterly basis. Read to know more.
All you need to know about the child tax credit
The Covid19 pandemic made millions of Americans choose between parenting and paychecks. During the pandemic, many kids between the ages of 18 and under, lived below the poverty line. With the 2021 child tax credit reform, parents can now receive an enhanced credit even if they failed to pay their 2019 and 2020 taxes. The Child Tax Credit has been expanded by the American Rescue Plan Act, as a part of the $1.9 trillion stimulus package that President Joe Biden approved during March. These credi