Today’s gig economy brings with it good news for independent contractors considering what’s deductible and what isn’t: Write-offs for 1099 contractors abound. If you’re a freelancer, you need to be in the know so you can get all the deductions you deserve.
An independent contractor is anyone – person or business – that offers goods or services to some other entity, either under written contract or through a verbal agreement. This category of workers includes professionals from web designers and writers to real estate agents, truck drivers and more. All these people and many others need to keep invoices and receipts to prove deductible expenses at tax time.
What Can I Deduct As A Contractor?
So what expenses can I deduct as a 1099 contractor? The list is long. It generally includes all the ordinary and necessary expenses related to doing your work. Some of the specific items an independent contractor may be able to deduct are:
Remember, the IRS won’t correct your return if you fail to claim a deduction to which you’re entitled. Instead, you’ll simply pay more.
A Bookkeeper Is A Great Idea
Every small business – no matter how small – can benefit from the assistance of a bookkeeper in determining what expenses you can deduct as a 1099 contractor and in keeping track of your independent contractor expense account. To make sure you’re on the right track with your deductions, be sure to do your own research or let a bookkeeper or other professional help you make smart decisions. The most important thing is to keep good records, no matter who handles them.
For San Diego bookkeeping services tailored to meet the needs of your business, reach out to AD Bookkeeping Services now. It’s the right decision to keep you well-organized and help you stay on the right side of tax intricacies.
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