How To Prepare For Your Tax Preparation Appointment If You Are A Freelancer

If you are a freelance writer for a living, you are probably considered a small business owner. You will have to file taxes each year that include the income you earned from this job, and you may want to go to a tax preparer to have your taxes done. If you plan to do this, you will need to prepare for this meeting in advance and here are some of the top things you should do.

Bring Your 1099s

As a freelancer, you probably earn your money as an independent contractor, as this is the most common way freelance writers work. As an independent contractor, you would not receive any W-2s. Instead, you would receive tax documents called 1099s. A 1099 is a form that shows how much income a particular company or person paid you during the year for your writing services.

Find Documentation That Shows Your Quarterly Tax Payments

When you receive 1099s and not W-2s, you are solely responsible for paying your taxes on this income, and in most cases, freelance writers benefit greatly from making quarterly tax payments. These payments are estimates of how much money you think you would owe for taxes and paying them quarterly reduces your tax liability at tax time and helps you avoid paying penalty fees for your taxes. If you paid any quarterly payments, you will need to bring the documentation that shows how much you paid. This is vital for your taxes.

Create a List of All Your Expenses Related to Your Business

You could bring in a box full of receipts that shows all your expenditures for the year, but this is not recommended, as it would take too long to go through all these receipts. Therefore, you should sort through your receipts and expenses before your tax preparation appointment. You could add up all your receipts for different categories, and here are some of the categories of expenses you might be able to write off as a freelance writer:

  • Home office expenses
  • Internet bills, telephone expense, and other utilities
  • Gas or car expenses for traveling for work purposes
  • Meals and entertainment when traveling for work purposes
  • Office supplies and equipment, including a computer, printer, and stamps

Any expense related to your writing business is something you might be able to write off.

If you are preparing for your tax appointment, make sure you come prepared. You can even call your tax preparer in advance to learn more about how you can prepare for this meeting. For more information, contact tax preparation services in your area.