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Tax season can be a stressful time, especially for freelancers who might owe taxes at the end of the year. It can be overwhelming to look at the tax debt you owe from the profits you have made.

Our firm specializes in tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen small business owners and freelancers get blindsided every year by a huge tax bill and often falling behind on their taxes for years on end. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement options. Get help from Ron Friedman, CPA.

So, if you’re worried about how you’re going to pay your tax bill this year, try to relax. There are a wide variety of legitimate deductions you can utilize as a freelancer to bring your tax liability down. We encourage you to talk to a tax professional to see if any of the following deductions apply to you.

1. Home Office

If you have a home office, you will be able to deduct a part of your rent or home expenses as an expense for your business. Be careful though, home office deductions may require a dedicated office space so speak to a tax consultant to find out if you qualify. In addition to your home office, you can deduct any related office supplies you used over the year. Keep the receipts for paper, ink, and any other home office supplies you’ve purchased. You should also be able to deduct any technology you bought specifically for work. If you have a work computer, internet, and office furniture, those can maybe qualify you for a tax deduction. Furthermore, you can deduct any expensive software programs you need to purchase for work like Adobe photoshop or your word processor.

2. Insurance Premiums

If you work from home, you may be able to deduct your health insurance costs or any other insurance that is required for your job. If you have to purchase liability or malpractice insurance, that is a work-related deduction.

3. Travel Costs

If your work requires you to travel, the cost of that travel is a deduction. Hotel costs, mileage, and even food you eat during work trips are deductible expenses. However, if you are partially traveling for work and luxury at the same time you have to be careful. Any portion of your trip used for a personal vacation is not a deduction. You can only deduct expenses that are specific to your work costs.

4. Advertisement Expenses

If you’ve spent any money advertising your business, you can use that expense as a write-off. Any type of advertisement will qualify as a deduction whether you created online ads or utilized influencer marketing for sponsored posts. If you spent money on promoting your business, record that expense for your tax records.

5. Car Expenses

If your automobile is an integral part of your work, you can deduct expenses that are associated with it. You can itemize costs like auto insurance, gas, and any maintenance work you had to pay for. However, you can only deduct the expenses you utilized while working. If you used your business car as a personal car, you cannot deduct all of these expenses and will need to figure out the percentage of time you used your car to work.

6. Occupational Licenses

If your freelancing job requires you to pursue a license in your field then that license becomes a business expense. You may not have to renew your license annually but in the year you pay to renew, you can deduct that from your tax costs.

Owe Back Taxes and Need Tax Relief?

While many of these tax breaks may seem incredibly appealing, filing them incorrectly can result in an audit or the IRS disallowing your deductions and charging you penalties and interest on your tax debt, making your problems worse.

If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Get help from Ron Friedman, CPA.

Just because you owe back taxes doesn’t mean you need a tax attorney. The same is true for hiring an accountant to resolve your tax debt. The professional to choose when looking to resolve your tax debt issues should primarily focus in tax resolution.

If you owe the IRS back taxes, it’s best to have the right tax relief firm representing you for the best possible result. Don’t try to face the most brutal collection agency on the planet alone. You’ll be sorry you did.

Note: If you already have a tax problem and owe more than $15k to the IRS or state but can’t pay in full, contact our firm today. We help people find tax relief, file years of unfiled tax returns, and sometimes settle their tax debt for a fraction of what’s owed.

What Should I Do?

Settling an IRS tax debt can be a very stressful task. Finding the right help can be just as daunting. Tax resolution is a niche area of tax practice. The right professional who is engaged to resolve your income tax debt should have specialized knowledge and training in tax collection rules and regulations, as well as an appreciation of those charged to collect them. There is both science and an art to resolving income tax debt matters. Consumers should be informed of what to look for when seeking help.

Tax resolution firms spend a lot of money getting your attention, claiming they can drastically reduce or even eliminate your tax debt by applying for legitimate IRS hardship programs. The truth is, most people don’t qualify for these programs. As a result, these companies are unable to resolve the tax debtor’s problem and, very often don’t even correctly complete the required paperwork for the programs the IRS offers. It leaves taxpayers still in tax debt and, to add insult to injury, they don’t provide refunds for work not completed.

The three professions that are allowed to represent taxpayers before the IRS are CPA’s, licensed attorneys and Enrolled Agents. Each designation carries with it its own licensing/certification requirements. However, not all CPA’s, licensed attorneys and/or Enrolled Agents are created equally. You wouldn’t hire a trust and estate attorney to defend you in criminal court, similarly you shouldn’t hire any CPA, attorney and/or Enrolled Agent to solve your income tax debts.

Obtaining certification as a tax resolution specialist requires the applicant to meet certain educational, experience and character requirements. They must also pass a very rigorous examination, demonstrate their expertise in tax resolution and adhere to a Code of Professional Ethics.

OWE BACK TAXES?

It’s important to note that only experienced firms like ours are able to handle tax debt cases since negotiating with the IRS requires specialized skills that often fall outside of the scope of most conventional firms.

Our firm specializes in tax problem resolution. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential tax consultation to explain your options to permanently resolve your tax problem.

Tax Deductions You May Be Eligible for as a Freelancer