As a freelance technology writer, there are numerous items that you can deduct from earnings in order to save money on your taxes. However, in order to deduct these items, you need to keep track of them throughout the year. Knowing what items you can deduct from your overall income can help you make smarter business decisions throughout the year, not just at tax time.
#1 Magazine Subscriptions
As a freelance technology writer, you need to stay on top of the trends in your field. One way to do that is by subscribing to technology magazines and publications so that you can stay on top of the latest news in your field. These subscriptions can all be deducted from your taxes at the end of the year.
#2 Professional Organization Memberships
Depending on the areas that you cover in the technology world, there are different professional organizations that you can join. These professional organizations generally provide you with access to information and resources. As long as your membership benefits and assists your technology writing business, you can also deduct these expenses from your taxes.
#3 Technology Equipment
As a freelance writer, you are going to need the right equipment to do your job. That is where Section 179 comes into play. Section 179 is designed to take away the burden of purchasing necessary technology equipment for small business owners, such as sole proprietors.
This deduction allows you to write off the full price of certain equipment or software that you purchase the year you purchase it instead of only being able to write it off over the course of a couple of years based on the depreciation of the technology product. This basically means that if you purchase $25,000 worth of qualifying equipment, instead of being able to deduct only $5,000 per year for five years based on the depreciation value of the equipment, you can deduct all of it.
This deduction allows you to invest and write off more into your business up front. As a technology writer, there is probably a lot of equipment, software and programs that you need to be familiar with first-hand in order to write about them effectively; this tax deduction gives you a way to afford to make those investments in your craft. In 2016, you can write off up to $500,000.
Don't be afraid to make investments in your business. There are numerous investments you can that will help you grow your business as a freelance technology writer, such as subscribing to magazines and professional organizations in your field, and purchasing the software and equipment you need to write effectively within your field. These investments can all be written off on your taxes.
For more help planning your taxes, contact Mary Anne Bohlinger CPA LLC or another tax accountant near you.