We wanted to get to know Kajli Prince (NAIWE’s Tax Expert) better, so last month we sat down with him. Here is what he shared with us.
What do you feel is one of the most beneficial pieces of tax advice you have given? Why?
Have multiple streams of income. Often, having one stream of income is not sufficient to meet both current and future financial needs. Future needs include retirement, i.e., how much you think you may need to retire and how you plan on getting to that number.
Are marketing expenses deductible?
Yes. Generally speaking, the government allows freelancers to deduct marketing expenses that help bring in new customers and keep existing clientele.
Is there a checklist to help freelancers avoid overlooking tax credits?
Yes, there are checklists. However, I find that the best guide to use is a Schedule C (Form 1040). Part II of the Schedule C lists the expenses that a self-employed individual (freelancer, etc.) typically claims.
It’s tax time! Are you ready? Learn about relevant credits and deductions that apply to independent writers and freelance editors, with a focus on the new deduction: Qualified Business Income Deduction. It is a new provision from the most recent changes in the tax law (Tax Cuts and Jobs Act) that allows small business owners to deduct up to 20% of their qualified business expenses.
You can join in this conversation on February 27, at 7 pm eastern, when NAIWE will host a discussion on identifying and managing difficult freelance clients. The cost for NAIWE members is only $10! Non-members can join for $30. Register today!