As a self-employed freelancer, navigating taxes can tricky. After all, the laws surrounding taxes seem to change all the time and it’s easy to get confused when trying to work out what is a legitimate tax deduction and what isn’t.
One of the most misunderstood deductions for freelancers is the ‘home office deduction’. Many self-employed people and freelancers fail to claim this deduction because they either don’t know about it or don’t understand how it works. The last thing they want is to trigger an IRS audit, so they don’t use it. But if you work from home and have a dedicated space there (even a desk counts), then you can write off a percentage of your rent/mortgage, utilities, wifi, phone and property taxes.
2020 has been such a rollercoaster for the self-employed, with the economic fallout from the COVID-19 pandemic affecting the income of freelancers in most sectors. So you’re going to want to take advantage of every tax deduction you’re entitled to.
Expense tracking and tax software provider Keeper Tax has produced this handy infographic which lets you determine whether you are eligible for the home office deduction.
You can work out quickly and easily whether you qualify for the deduction and what can and can’t be claimed for as part of it. Depending on your circumstances, it could save you hundreds, if not thousands of dollars per year.
Infographic Design By Keeper Tax Keeper Tax