Every freelancer will tell you the practice has its ups and downs.
From bad clients and contracts to tediously managing and pitching work, the entrepreneurial side of the one-person show is sometimes overlooked. And if you’re feeling burnt out or overwhelmed from the gig, there are few write-offs you should consider that’ll make your operation much more enjoyable. That’s why we’re bringing you a few of our favorite write-offs that freelancers often miss.
A Coworking Space
One of our favorite write-offs overall, a coworking space can provide a serious bang-for-your-buck with the right amenities. As freelancers often find themselves in coffeeshops or markets to work, a coworking space can provide that gap of coffee, beer, kombucha, and even snacks all in one write-off. A helpful way people approach this is ‘what am I spending already on coffee, beer, etc and how much of that could be contributed to a membership?’, where often it’s much more worth it than if you were to write those items off individually. Plus, coworking can be a great way to meet new clients as well.
Research Materials
No matter if you’re writing about french food or designing a silhouette for a shoe company, going out and buying research materials is an often underreported write-off by freelancers. While we’re not suggesting that everything can be justified research materials, it’s overlooked how much can be written off for exploring what a client (and their competitors) are about. Keep this in mind as you jot down a few necessities moving forward.
Meals
As long as you’re discussing work, writing off meals is a must to include. Usually, a write-off that a lot of freelancers are timid to use, it’s actually a pretty effective way to manage your business. Whether it’s a meeting with clients, business partners, or peers in your work’s community, get in the habit of setting up more lunch and dinner dates with those who you work closely with, providing a write-off you’ll thank yourself for down the road.
As learning more can only help improve your skillset, this is one write-off almost every freelancer should see if they’re eligible for.
Alcohol For Meetings
Forget how great it is to write-off meals, another excellent choice to include is your favorite spirits. Although the beer, wine, or liquor does have to be for a business-related event, it can actually help you save quite a bit on entertaining clients while making meetings a lot less boring. Plus, it’s an excuse to try out new varieties.
Travel
Although we’re not suggesting to start booking vacations as a write-off, there’s nothing wrong with taking on a little bit more business travel. Depending on your industry (and the type of need), utilizing travel to meet new clients, attend a conference, or research a project are all in the ballpark of write-off territory. Some common travel write-offs include plane/bus/train tickets, conference fees, travel to/from the place of lodging, lodging, and some meals, however, it’s best to consult with an accounting expert before making plans.
Education
Providing yourself an education will not only help provide more value to your freelancing business, but it also can be considered a write-off as well. This commonly includes books for research, attending conferences, taking online classes, or attending webinars, but can include an array of other options as well depending on your occupation. As learning more can only help improve your skillset, this is one write-off almost every freelancer should see if they’re eligible for.
Your Phone Bill
A phone bill is a staple write-off for most freelancers, providing the basic means of communication to get business done. As one of the more straightforward write-offs, it’s almost a necessity to include when reconciling your tax obligation.
New Technology
Who doesn’t love buying themselves new stuff? Regardless if your laptop could use an update or you finally are going to splurge on that camera you’ve been eying, the consideration of a tax-write off for new technology should go into your purchasing decision. As long as it provides direct value to your freelancing business, this is a tool that can help get the job done quicker, while also potentially reducing a chunk of your tax liability.
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Home Office
Although it can get tricky if you’re paying for another studio space, writing off a portion of your rent for your home office is a common tax tip for freelancers. Commonly calculated by the square footage of the space you use for work, the home office write off is $5 per square foot, with a maximum of $1,500 for a 300-square-foot-space. Not a bad chunk of change for something you’re already paying into.
Accounting
Of course, hiring an accountant to help with your tax needs will ensure you don’t have to worry much about keeping up with tax laws. You can just freelance, and let a firm like ours take the reigns on your write-offs (while also being a write-off ourselves). Not a bad deal if you’re not exactly in love with crunching numbers, and would rather do whatever it is you’re passionate about. After all, that’s what we’re here for.