⭐9 Business Expenses You Need to Write Off⭐
don't leave thousands of dollars on the table
A few months ago on Twitter I saw a writer’s thread of all of the expenses you should be writing off when doing taxes.
I was extremely chagrined to realize that I’ve never written off any business expenses. Well. Welcome to 2023, where we write off business expenses (like the laptop I bought in June)!
After all, this writing gig isn’t some mere hobby, is it? And this doesn’t apply to just writers. It applies to everyone who can write off expenses for their work. It’s time to get serious about such things. As my favorite finance ladies like to say, “if you’re not writing your expenses off, you could be leaving thousands of dollars on the table.”
The other day on NPR I listened to a tax professional say that many of us will be getting back less money than last year because there is no Covid relief money. All the more reason to spend a little time looking through our 2022 finances.
It’s a big deal. Even a little bit more cash enables us to do the work we most want to do.
BIG DISCLAIMER: I’m not a tax professional (uh, in case that wasn’t obvious). Please feel free to give more suggestions as you read the below.
9 Business Expenses You Need to Write Off:
Start Up Costs (up to $5000 for getting business off the ground)
Home Office (if you work from home, you can deduct the cost of your home office. Ex: if you have a 2000 square foot home and your office is 300 square feet, then 300/2000 = 15%. Deduct 15% of your mortgage interest or rent, + utilities, and home insurance. Watch the video)
Business Meals (Save receipts, write a note on the receipt, take photo, digitally file)
Office Supplies and Furniture (laptop, chairs, desks, printers, paper, paint, chargers, lamps, pens(!)…)
Prepaid Expenses (ex: business insurance, promotional swag)
Child and Dependent Care
Phone and Internet Expenses (only partially if it’s for both personal & business)
Education and Coaching (courses or classes, trade publications, books, business webinars, conferences, memberships to professional organizations)
Travel & Shipping costs (mileage, gas, tolls, parking fees, airfare, ubers, hotels, postage for all those Advance Reader Copies you send)
A plug for Dow Janes (my go-to women owned business gurus!) who have supercharged my interest in being in the financial know. Their free weekly newsletter is invaluable.
Specifically for writers, artist, illustrators: deduct the cut your agent received for commission. Let’s say you earn 10,000, but your agent gets $1500. The IRS still says you earned $10,000. Deduct it!
How to manage and track expenses: I have a Google doc where I record the date, expense, and item. Digitize all receipts (there are apps for that - I need to research. ideas?)
Let’s say you have someone else in charge of your finances, so who cares? I share all financial information with my husband. All of our accounts are shared and both of us pay different bills. Even so, I’m often not very good about tracking money and expenses. He has always done the taxes (because I don’t want to), but with me turning to full-time self-employment it’s been advised that we separate this out. It will cost a couple hundred dollars, but I’ll likely turn to a tax professional next year. This will also keep me more accountable and force me to pay attention to the above list.
Speaking specifically to women: we need to know about money and share financial responsibility with our partners. I think more women are in the know than in previous generations, but many women still leave the financial “know-how” to their male partners. It’s super easy to coast and not pay attention, but I’ve known too many women who hit midlife and tragedy occurs - death, divorce, unemployment, major illness. The stress of not knowing anything about money can be paralyzing. It leaves us poorer and feeling incredibly helpless.
Knowledge truly is Power and CONFIDENCE.
So, that’s my plug: get in the know. Write off expenses. Don’t leave money on the table.
What else? Let me know.
Amy 💗
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I knew some of these, but not all. Thanks! Am saving for future reference.
Haha - this is golden advice, but I really think I could justify a karaoke machine! Thanks for this. I will soon need my own tax accountant, separate from husband.