Tax Deductions You Might Have Missed as a Freelancer

Tax season is here - we’ve got this, ladies! 

Doing your own taxes as a freelancer can be overwhelming for even the most seasoned self-employed worker. Your business is growing, tax laws are evolving, and how we conduct business is changing - which means no two tax years may ever look the same for a freelancer! 

Make sure you’re up to date on all of the deductions you are eligible for as a freelancer - especially if your business changed a lot in 2020! If this is your first year (or even longer!) year doing your taxes, here are some tax deductions you might have missed.  

Health Insurance!

As a self-employed individual, you are eligible to deduct the premiums that you pay towards medical, dental, or other forms of insurance if you have opted for your own healthcare plan. This can also extend to what you pay for covering your spouse or dependents if they are on your plan. 

Not on a healthcare plan? You can still explore options at https://www.healthcare.gov/ to enroll in a plan through August 15th! 

Your Home Office!

If you use a dedicated space for your freelancing work, the square footage of this area can be used to calculate a deduction for your taxes! To qualify, you must use this section of your home or office to “regularly and exclusively” conduct business. 

Don’t have a space like this currently? Think about the big picture of your business and take the plunge to dedicate a space for your business. Show that you’re serious about your goals by decorating your space to set you up for success! 

Interest on a Business Loan!

Taking out a business loan is common for freelancers starting out with a business that might require expensive equipment or a larger space to conduct business. The interest on your monthly payments can be dedicated as a business expense if your loan qualifies. Check with your lender to determine if your business loan interest is eligible for deduction! 

Membership Plans that Build your Skills or Business

If you are a part of a membership plan that Think networking groups, professional organizations, and other memberships that provide resources or connections to help you grow your business. 

Not a part of one? This could be a great time to consider joining a local or virtual group that offers a membership for self-employed ladies like yourself, like our own Freelancing Females Directory!

With a little research, you can determine if you are eligible for deductions you might have missed. Make sure to always keep a thorough record of what’s coming and in and what’s going out so when tax season rolls around you are ready to go! Take some time this week to explore what deductions you might have missed before filing your taxes for 2020!