2011 Tax Tips for Freelancers
If you’re a freelancer incorporated as an LLC, there are certain business deductions you should include on your 2009 tax filing. As an LLC, you enjoy the benefits of owning a business, but you do not incur a double tax. Below is a list of forms and specific line items you should be cognizant of as a freelancer and/or single-member LLC.
Form 1040
You’ll need to file form 1040 as you normally do. As a freelancer, here are some specific things to be cognizant of:
| Form and Line Item | Description | Deductible |
|---|---|---|
| Form 1040: Line 26 | Personal: Moving Expenses | 100% |
| Form 1040: Line 28 | Personal: Self-Employed SEP | 100% |
| Form 1040: Line 29 | Personal: Self-Employed Health Insurance | 100% |
| Form 1040: Line 32 | Personal: Traditional IRA Deduction | 100% |
| Form 1040: Line 33 | Personal: Student Loan Interest | 100% |
| Form 1040: Line 34 | Personal: Tuition and Fees | 100% |
2009 Federal 1040 Form (PDF)
2009 Federal 1040 Instructions (PDF)
Form 1040: Schedule A
You’ll need to file Schedule A in order to list out all of your personal itemized deductions. As a freelancer, here are some specific things to be cognizant of:
| Form and Line Item | Description | Deductible |
|---|---|---|
| Form 1040: Schedule A: Line 1 | Personal: Medical and Dental Expenses | 100% |
| Form 1040: Schedule A: Line 5 | Personal: State and Local Income Taxes Paid | 100% |
| Form 1040: Schedule A: Line 10 | Personal: Mortgage Interest | 100% |
| Form 1040: Schedule A: Line 13 | Personal: Mortgage Insurance Premium | 100% |
| Form 1040: Schedule A: Line 16 | Personal: Gifts to Charity by Cash or Check | 100% |
| Form 1040: Schedule A: Line 17 | Personal: Gifts to Charity Not by Cash or Check | 100% |
| Form 1040: Schedule A: Line 22 | Personal: Tax Preparation Fees | 100% |
2009 Federal 1040 Schedule A Form (PDF)
2009 Federal 1040 Schedule A Instructions (PDF)
Form 1040: Schedule C
You’ll need to file Schedule C in order to list out all of your business itemized deductions. As a freelancer, here are some specific things to be cognizant of:
| Form and Line Item | Description | Deductible |
|---|---|---|
| Form 1040: Schedule C: Part II: Line 8 | Business: Advertising | 100% |
| Form 1040: Schedule C: Part II: Line 9 | Business: Car and Truck Expenses | 100% |
| Form 1040: Schedule C: Part II: Line 11 | Business: Contract Labor (Max $600) | 100% |
| Form 1040: Schedule C: Part II: Line 13 | Business: Depreciation (Hardware and Software) | 100% |
| Form 1040: Schedule C: Part II: Line 17 | Business: Legal and Professional Services | 100% |
| Form 1040: Schedule C: Part II: Line 18 | Business: Office Expenses (Postage, Paper, Supplies) | 100% |
| Form 1040: Schedule C: Part II: Line 20a | Business: Rental of Vehicle, Machinery, Equipment | 100% |
| Form 1040: Schedule C: Part II: Line 20b | Business: Rental of Other Business Property | 100% |
| Form 1040: Schedule C: Part II: Line 21 | Business: Repairs and Maintenance | 100% |
| Form 1040: Schedule C: Part II: Line 22 | Business: Supplies (Books, Magazines, Samples) | 100% |
| Form 1040: Schedule C: Part II: Line 23 | Business: Taxes and Licenses | 100% |
| Form 1040: Schedule C: Part II: Line 24a | Business: Travel | 100% |
| Form 1040: Schedule C: Part II: Line 24b | Business: Meals and Entertainment | 50% |
| Form 1040: Schedule C: Part II: Line 25 | Business: Utilities | 100% |
| Form 1040: Schedule C: Part V: Line 1 | Business: Other Expenses: Business Gifts | 100% |
| Form 1040: Schedule C: Part V: Line 2 | Business: Other Expenses: Transaction Fees | 100% |
| Form 1040: Schedule C: Part V: Line 3 | Business: Other Expenses: Conferences | 100% |
| Form 1040: Schedule C: Part V: Line 4 | Business: Other Expenses: Training | 100% |
| Form 1040: Schedule C: Part V: Line 5 | Business: Other Expenses: Web Conferencing | 100% |
2009 Federal 1040 Schedule C Form (PDF)
2009 Federal 1040 Schedule C Instructions (PDF)
Form 8829
You’ll need to file Form 8829 in order to list out all of your home office itemized deductions. Note that these expenses are only partially deductible, based on the percentage of your home used an office. As a freelancer, here are some specific things to be cognizant of:
| Form and Line Item | Description | Deductible |
|---|---|---|
| Form 8829: Line 17 | Home Office: Insurance | x% |
| Form 8829: Line 18 | Home Office: Rent | x% |
| Form 8829: Line 19 | Home Office: Repairs and Maintenance | x% |
| Form 8829: Line 20 | Home Office: Utilities | x% |
2009 Federal 8829 Form (PDF)
2009 Federal 8829 Instructions (PDF)
Comments ( 1 Comment )
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