There are many ups and downs when it comes to being self-employed. You’re responsible for marketing, getting customers, generating revenue and providing products people want. There’s also a lot of freedom that comes with being an entrepreneur–and a lot of expenses. So it’s important when the dreaded tax season comes around, you’re prepared.
There are lines of tax codes set in place to benefit those of you who are a Social Marketer––take advantage of this! So as you sit down and try to figure out deductions for this year and next, read over the advice below and how it benefits you.
Auto expenses are the bread and butter when it comes to tax deductions for anyone who is self-employed. To start, you may take the standard mileage deduction but actual expenses could yield you a larger tax return. This is why it’s important to track your mileage every day. In 2015, the standard mileage rate issued by the IRS was 54 cents.
You can also deduct parking fees and tolls, vehicle repairs, insurance, and regular maintenance. As long as you are using your vehicle for business purposes, you can look into using these deductions.
Telephone & Internet
For many Social Marketers, Modere is a home-based business. Part of home-based deductions involves your telephone and internet bills. The key here is to deduct the expenses related to the business. If you have just one phone, you will have to keep track of when you use the phone for personal time or for the business. This goes for internet usage as well. If you spent a few hours owning noobs at night after the kids go to sleep, you won’t be able to write those hours off.
One of this life’s most important aspects is to further ourselves, especially when it comes to education. As a Social Marketer, you probably purchased books or web courses, taken local college courses, or attended other classes to help further your business. All of these are potentially tax-deductible.
TurboTax mentions business owners may also deduct subscriptions to trade or professional publications as well as donations made to business organizations. If it’s necessary for the continuation and growth of your business, look into it as a tax deduction.
This deduction is a bit tricky because IRS laws require a legitimate home office. It can’t double as a bedroom or toy room for the kids. As mentioned above, many Social Marketers work from home. Having a home office gives you the opportunity to deduct a portion of rent, utilities, insurance, maintenance, professional cleaning, and interest.
State tax deductions vary by state but may be applicable to you.
Heading to SRC? Write it off! Flying to a Regional a few states away? Can you say, deduction? This one is easy to do as long as you keep receipts throughout the year. When you are away from your “tax home” (usually outside the city your business is located) keep track of work expenses.
These expenses include travel to and from your destination (plane fare), transportation at the destination (think rental cars or subways), hotels and meals. 100% of business-related travel expenses are deductible but only 50% of your meals and entertainment. If it’s a simple business-only trip, that’s easy. When you mix business with pleasure, pay attention and plan ahead.
*For professional help on your taxes, please see a trained and licensed tax analyst or consultant. This article is designed to show only some of the benefits of being an entrepreneur and is not professional tax advice.