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Work For Yourself And Slash Your Tax Bill

Aug 17, 2007
One reason that many people like the thought of working from home and freelancing is that you need to pay lower taxes. As a freelancer you pay taxes four times a year instead of monthly and many extra expenses can be taken as tax deductions. If you are involved in freelance employment these additional tax deductions can greatly benefit you.

One of the tax deductions which freelancers working at home are able to make is for a portion of their rent. If you work from home on freelance contract then the room where you work is considered like business property and is therefore eligible for tax deductions. Unfortunately this only counts if you are making a profit from your freelance business and you are not using your tax deduction from your home office to create a loss in your taxes.

If you are involved in freelance employment you should also have a look at the items you use - your stationery, magazines, books, computer accessories and find out what tax deductions you are able to get on these items.

There are also those items that you use for business that last longer than a year - such as your computer. You have two options for decreasing your tax with these items. You can take it as an expense in the first year (or the year it is bought) or you can spread the cost out over a couple of years taking into account depreciation. By taking it all off in the first year you will get a larger break in that year but you will not be able to use it as a deduction in the following years, or you could opt for a smaller deduction in each of the following years.

As someone involved in freelance employment you are also able to claim some expenses on professional memberships and seminars that are necessary for your work. For example if you are a freelance writer and belong to a writer's organization then you may be able to claim these fees from tax, or if you attend a seminar to do with your work then you can claim it from tax.

As a freelancer it is highly recommended that you find a professional tax consultant experienced in handling taxes for those involved in freelance employment and who has your best interests at heart to help you find all the tax benefits you can get from your freelance employment. Some one who is an expert in this field will be able to point out to you all the areas that you may not even know about as well as being able to offer you tax advice on some of the areas we have mentioned above. Take advantage of your tax breaks as a freelance worker and find someone who is an expert in tax law for freelance employment.
About the Author
Rob Palmer is the Editor of Freelance Work Exchange, the leading jobs site for contract professionals worldwide. Looking for a legitimate home business opportunity? Join Freelance Work Exchange for just $2.95 and get access to thousands of
freelance jobs and
work-at-home jobs for writers, designers, programmers and freelancers.
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