November 28, 2023

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Tax Tips for Freelance Writers: How to Lower Your Bill – 5 Things You Probably Didn’t Know

3 min read

April 15th, the deadline for filing taxes for People in america, is virtually here. If you might be a freelance author — particularly if you do your possess taxes like I do — it can be essential that you get all the deductions you can to decrease your tax monthly bill. Why? Simply because working an on-line organization can be really lower charge, which is a person of the good reasons many are so captivated to the career. If you have a personal computer and an web link, you are very much ready to go.

So, adhering to are 5 items you likely did not know that can assistance you decreased your tax bill — producing the variation among owing (potentially a whole lot) and finding a smidgen of a refund.

1. PayPal Charges: Do you deduct these? Practically quite time you acquire a payment, PayPal deducts expenses, which are generally 2.9% + $.30 for every transaction.

For intercontinental product sales, the PayPal price is 3.9%, in addition a mounted cost centered on forex gained. FYI, PayPal’s expenses can be less if you sell more.

Pay a visit to PayPal to find out more about their transaction fees, and will not fail to remember to increase this column to your charges sheet moving forward, Okay?

2. Banking Service fees: For case in point, let’s say you might be a travel author and you go absent and use an ATM that fees you service fees for withdrawals. This is a legitimate, deductible expense — because you might be on assignment.

3. Recurring Fees: For case in point, I publish ebooks. So I use an book cover-building web page to support me with the types. The month to month rate for this web-site is $9, which comes out of my PayPal account every month. I may go for 3 or 4 months without employing the internet site (because I also outsource some of my e book addresses), then two or three where by I use it all the time.

My place? It’s easy to forget about these fees and if you have two, three or four accounts like this (eg, magazine subscriptions, application subscription websites, paid out e-newsletter subscriptions, and so forth.), it can seriously add up to $400, $500 or a lot more for every year — that you could be deducting as reputable expenditures.

4. E-File: If you happen to be in risk of missing the deadline (which could price you penalties and fascination if you owe), consider e-submitting your taxes. Why? Simply because returns filed in this manner have a tendency to be processed more quickly.

5. Never File & Help you save Income! Did you know that if you are owed dollars my by the IRS (ie, are anticipating a refund), that there is no penalty for filling late? Nicely, it is true! According to the CNN short article, Owed a refund? There is certainly no penalty for filling late:

If you happen to be owed a refund and you don’t file your taxes by Tuesday, you won’t get strike with a penalty. This has generally been the case, but quite a few men and women never realize it. The IRS is chomping at the bit to get its tax earnings. It is really fewer worried about doling out refunds to people who have not claimed them yet.

So if you have a deadline you are striving to satisfy (in which you make money), and never have time to file taxes (which charges you time), by all means — satisfy that deadline. If you might be owed income, the IRS is not going to penalize you if you file your taxes late (would like this applied to me!).

Satisfied submitting, and if you happen to be heading to file late and owe, here is a good tax calculator for estimating what you need to mail in.

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