One of the most effective ways to save money on your 1099 taxes is to take advantage of business expense tax deductions, such as deducting the cost of office supplies, equipment and travel expenses.
The only catch here is that the expenses you claim as
self-employment deductions must be from your primary source of income. For example, if you work as a freelance graphic designer, and this work makes up more than 80% of your yearly income, this will be considered your main work. If you do something else occasionally like
freelance photography gigs, you can only deduct business expenses associated with your graphic design activities.
Certain tax credits and self-employed
health insurance deductions can also lower your tax bill. Just to be sure, you can also consult with a tax professional or accountant to ensure that you are taking advantage of all the deductions and credits available to you. For this you can get in touch with FlyFin CPAs that are available 24/7 through the FlyFin app.
One of the best ways to save money on taxes when it's time for annual filing is by using expert CPAs to maximize your savings on taxes. FlyFin's CPAs take care of 95% of the work for you, preparing and filing your federal and state taxes directly through the app with 100% accuracy.