Comprehensive Guide to Allowable Tax Deductions for Freelancers
As a freelancer, you can claim a variety of tax deductions for expenses incurred in the course of earning your income. 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.
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.
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
You 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.
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