Tuesday, August 2, 2011
Single, low income freelancer filing taxes?
if you do have to file as an independant contractor (self employed) you can, in fact write off your transportation, buisness expenses (that were not paid for by your employer) and any home office space you might have on your taxes .this would be the only legit way to write off a portion of your rent, utilities, home office supplies, cell phone for work, etc ..do the trial run on Turbo Tax (use the Freedom Free Edition, go through the IRS website to sign up so they dont try to charge you). These deductions will offset some of your tax liability. You will need to contact that business you did work for, and get their EIN and the amount they paid you over the course of your employmet (up till dec 31). These deductions are seperate from your personal deductions entirely. i personally have used the simple turbo tax for years, and am also self employed with several contractors. The turbo tax is pretty easy to figure out, and makes it simple to find out what is the smartest way to go about deducting, etc. you can add and remove things, go back and change or delete things... Im not encouraging you to Fib, but if you do have these legitimate expenses-make sure you get reimbursed.
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