Monday June 18, 2018
Tax Tips for Independent Contractors
Writing Off Your Expenses
Independent Contractors can claim a variety of expenses against their income to help lower their tax bills.
If you have ordinary and necessary expenses for your industry, you may be able to claim the expense. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your line of work.
For example, as an Uber or Lyft driver, keep track of expenses for city maps, apps, mileage and more. If you rent your home as an Airbnb, don’t forget to count expenses such as cleaning services, property insurance premiums, and maintenance.
Keep Track of your Expenses
That’s right, save those receipts! You will need to be able to prove your expenses to the IRS in the event of an audit. Make sure you note what each expense is for to help you keep track of expenses by category i.e. office supplies, gas, tools, etc. There are some great apps on the market that can help you easily keep track of your expenses related to your business. Don’t forget to keep track of how much you spend on Apps! They are a business expense too if used for business purposes.