Freelancers Tax | Online Tax 2024

Learn about Tax Deductions for Freelancers

As a freelancer, you can claim a variety of tax deductions for expenses that you have incurred in running your business. Here are some of the key deductions you can claim:

Home Office Expenses

If you use part of your home exclusively for your work, you can claim a portion of your rent, electricity, and internet bills.  Ideally a log should be used to assist in any proportion calculations.  Logs are available on Deduction Grabber.

Business-Related Travel Expenses

These include costs associated with transport, accommodation, and meals. You can only claim these expenses if you had to stay away from your home.

Equipment and Asset Purchases

If you’ve purchased equipment such as computers, printers, or software for your freelance work, you can claim depreciation. If you are a Small Business Entity with turnover less than $10 million, then you should be eligible for the instant asset write off for equipment than costs less than $30,000.

Professional Development and Education Expenses

Courses, workshops, and conferences that contribute to your professional development can be claimed as tax deductions.

Marketing and Advertising Expenses

Costs associated with website development and hosting, social media, and promotional materials can be deducted.

Insurance and Superannuation Expenses

These are also deductible where they relate to your freelancing business.

Motor Vehicle Expenses

If you're using your car to visit customers or doing the daily office run around then there's a tax deduction in there for you.  Track ALL costs associated with the car and start a log book to track deductibility.

Administration Costs

Any time you are spending money to buy resources for your business you'll find they are, more likely than not, tax deductible. Examples would include: advertising, bank fees, credit card fees, stationery, subscriptions, phones and the like.

Remember, not all expenses are tax-deductible. Personal expenses, such as your personal portion of rent, groceries, and clothing, cannot be claimed as tax deductions. To maximize your tax deductions, it’s important to keep accurate records of all your business expenses. This includes keeping tax receipts, invoices, and records of any cash payments you make.

Apps like DeductionGrabber can help you keep track of these expenses efficiently. It’s also advisable to seek professional advice from Gotax who can guide you on what expenses are tax-deductible and how to claim them correctly.

Download Deduction Grabber

If your a freelancer that is a small business, you may want to consider bookkeeping software to track all those expenses and invoice your customers. eCashbooks.com has the answer to provide simple and easy DIY bookkeeping.

Your Gotax return is a simple and very easy DIY tax return system that you can complete your tax return from anywhere at anytime.  Give them a go.