Thanks for watching, Brittany. You've got this! And hey, if it makes you feel any better, it's actually pretty hard to end up in jail over your taxes! You have to be convicted of fraud or tax evasion - think, some kind of Al Capone-type situation. Here are a couple of articles if you'd like to learn more and set your mind at ease! www.keepertax.com/posts/can-you-go-to-jail-for-irs-audit www.keepertax.com/posts/can-you-go-to-jail-for-not-filing-a-tax-return
Thank you thank you. This is be my fist time working with a 1099. The information you provided is mind blowing. Keep up with the great work. I will be coming back more often for more great information.
Thanks for watching! If you haven't already, check out our full playlist of tax breaks for business owners here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-qRODgBVBL0Q.html Are there any particular write-offs you'd like to learn more about?
Hi. I dont know if you guys ever encountered this but i am using a keeper tax app and filed for 2022 tax return. A month later irs sent me a verification letter . So i did verified my account but i noticed that my bank account number and routing number was different from what they entered from tax filling. I asked Caitlin my tax expert from keeper tax why did they enter wrong data and she told me this “ Got it - Nothing to worry about, Chase does not provide Keeper with your actual ACH account number, but instead a "randomized" ACH number. It is a valid ACH number and is connected to your account, it’s just not one that you will recognize. 🤓
You should do a video just explaining how Keeper Taxes works. For example, do I need to provide my debit card number or credit card number(s) I will be using? How much personal info or the type of info I need to provide in order for Keeper Taxes will work for me?
Hi, David! Great suggestion on the video. You will have to provide bank or credit card numbers for any accounts you use for work for the app to be able to find write-offs for you. You'll also want to enter an estimate of your 1099 income for the year - and your W-2 income, if you have any - for us to provide you with the best possible estimate of your tax savings. There's no need to put in your SSN or anything unless you want to file your taxes through the app!
Ok, we CAN deduct 'business expenses' and as an online marketer we can deduct the cost of software/digital instructional packages which were/are/will be used to earn an income. But how far back can we go in deducting the cost of those expenses? Let's assume we bought software or paid for access to do certain tasks - such as creating affiliate sales videos, paying for memberships to marketing groups/guru education and only started earning revenue in year 2023. Can we deduct those expenses we paid out in 2023, 2022, etc - how far back. I asked only because I'd read somewhere on some Govt website that most new businesses don't make a profit for 3 years so the US Govt allows deduction of expenses going back a certain number of years PRIOR to making a profit.
Great question! You're right - the IRS acknowledges that it can take a while for your business to get off the ground and start turning a profit. That's why you can start claiming write-offs from the time you actively started trying to get work, e.g. by bidding on projects, marketing your services on LinkedIn, cold-calling prospects, and so on. So if 2022 is the year you started actively trying to get clients, then 2022 is when you can start claiming your expenses. Here's an article where you can learn more: www.keepertax.com/posts/startup-costs You didn't specifically ask about this, but I wanted to talk a little bit more about guru education, since you mentioned it. IRS rules state that you can only deduct education if it helps you improve your skills at a job you already do - you can't deduct any educational expenses that help you transition between jobs. So weirdly, you'd only be able to deduct group memberships and guru education if your'e already a marketer, not if you're trying to get started as a marketer while doing something else to pay the bills.
Great videos! The questions below are amazin and super helpful to read this is a valuable resource. I have questions about the education write-offs. Would business, marketing, and the like classes, books, and coaches count? I work in the spiritual realm, I don't use tools, but I do continually learn different techniques, modalities, and engage in paid communities to hone in my skills, would these be write-offfs? Thanks in advance!
I love your videos and the way you explain everything! When you calculate workspace/homesquare footage and get 16%, do you now calculate 16% of home expenses for the YEARLY expense? For example, if I spent $1,200 on water for the YEAR, will I put 16% of $1200, which is $192 on my taxes. So I would put $192 for my taxes as part of home expenses for water/utilities? Also, how do I know what tax bracket I am a part of ?
Thank you so much, Yudeysis! You can calculate your home office deduction using monthly expenses or annual expenses. If you had the same work setup all year, it's generally better to use your annual living expenses. If you moved or changed setups during the year, use your monthly expenses based on when you had each setup. More info here: www.keepertax.com/home-office-deduction
Hi, Lauren! You can do it either way, and there are pros and cons to both. You're definitely able to pay quarterly taxes based on your net - post write-offs - income! But that requires keeping up with expenses as you go. You can make that easier on yourself using an expense tracker app, like Keeper: keeper.tax/e/find-write-offs Because a lot of people don't want to track expenses for each quarterly tax due date, they just end up taking care their write-offs in April. The trade-off is, you'll end up overpaying your quarterly taxes. You'll get a refund back after you file for the year, but it DOES amount to giving the IRS a loan. And that understandably rubs a lot of people the wrong way!
Thank you so much for this information!! I would love to know more about what to do if we didn’t save receipts for things we found out we could write off? Are credit card statements enough or do we just have to skip those things?
Hi, Chelsea! That's a great question. If you didn't end up saving your receipts for a business purchase, credit card statements (or bank statements) are totally fine. This is such a common question that we actually have a video in the works about it. So look out for that in the next couple of weeks! In the meantime, you can check out this blog post about saving receipts: www.keepertax.com/posts/receipts-for-taxes
Great question! Your electricity definitely counts, and so does a portion of your gas, water, trash, Wi-Fi, and other utilities. Don't forget a portion of your rent and renters insurance, your security system (if you have one), and any home repairs you get. Of course, there's always office furniture. Your cell phone and computer count as partial write-offs as well, and your supplies should be a full write-off! But you don't actually need to have a home office to deduct these. To learn more about home office deductions, you can check out our video on that topic! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T_RKwT49X7M.html
Really good question, Shure! If you use part of your home as an exclusive workstation, you can write off a portion of your rent corresponding to the percentage of your place you're using for work. So for example, say you use an 80-sq ft area in your living room for work, and your whole apartment is 800 sq ft. Then you could write off 10% of your rent. To learn more about how this deduction works, check out our video on home office deductions! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T_RKwT49X7M.html
Great question! Personal trainers can deduct plenty of expenses, including training equipment, the cost of promoting their business (including a website or ads), and any education they pay for to get better at their work, including certifications, conferences, and self-paced courses. Gym memberships are potentially on the table too! Check out this blog post to learn more: www.keepertax.com/posts/are-gym-memberships-tax-deductible
Thank you. I understand a better bit more so. From my google search we can only write off 10,000 for the first year. Isn’t that correct. After that how much?
Hi! So I kept records of my expenses. How do I actually include this in the filing of my taxes. I am currently attempting to file on cash app taxes , and i dont see any place to do so
if work for someone to do a cleaning job, and will file a 1099 for you, do you still need to file a w-9 or not and can you fill it out if you are an undocumented person but have S.S.N.?
Such a great topic, Sarah! Filming a video on this is on our list for sure. But in the mean time, you can learn more about this by reading our article: www.keepertax.com/posts/startup-costs
im a dog walker can sunscreen not be a tax write off??? Also ive recently had my debit card hacked so my partner has had to finance my business expenses and ive paid him directly through my banking app can i still write off those expenses ??
Hi! You can definitely write off certain expenses if you drive for Uber. Here's a handy guide to write-offs for rideshare drivers: www.keepertax.com/tax-write-offs/lyft-uber-driver
I’m a college student I sell on Poshmark can I deduct my apartment rent because I use my room as space to sell. And anything else you can help me with. Thanks
Helpful! However, for example I use keeper and it only deducts a percentage of expenses that were solely for work. Like a parking at an airport that I had to use to park my car as I traveled for work. I am a Videogropher. The entire trip was work related. Yet it only deducts a percentage. Why is that?
Hi Jeovany! If you message your tax assistant in-app or send an email to support@keepertax.com, they should be able to help you figure this out. Thanks for reaching out!
This is so helpful! Do you know if groceries are a write-off if you have to travel out-of-state for months at a time for work? I know the hotel is a write-off, but would the supplies you purchase for hotel living qualify as well?
If your trip has you staying overnight at all, you can write off food expenses, including groceries and takeout! One important thing to keep in mind: You can usually deduct 50% of your meal costs. For 2022, meals you get at restaurants are 100% tax-deductible. Go to the grocery store, though, and you’re limited to the usual 50%.
Hi, Alonda! That depends on how much income you're making through your freelancing or self-employed work. If you get that $5,000 in tax write-offs, it'll lower your taxable income. You can use calculators like this one (www.keepertax.com/1099-tax-calculator) to estimate how much you'll owe, or whether you'll get a refund!
@@KeeperTax i tried to click that calculator link and it was broken. Do you know another good one? Thanks for your video! You are very charismatic and break it down so well.
@@LoraStead Hi, Lora! For some reason, RU-vid put the right parenthesis as part of the link. The link should work if you try this: www.keepertax.com/1099-tax-calculator
Hello Tyra, I love your RU-vid videos on taxes. They are quite informing. Can you tell me if you have one for deducting self-employed educational expenses? My daughter works a full time job in an unrelated field than her small home business. Her self-employed business is teaching yoga, meditation and personal training. She has had this side business for a few years and is really wanting to grow it. I know there are a lot of expenses that are directly related to this business that can be written off. However, last year she took some courses on better building her RU-vid channel and on running a small business. Since these educational courses are not specific to teaching yoga can they still be deducted? Thank you for your help. Jim
Thanks for watching, James! There's actually a video about that right here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ifpP0DtI4UA.html And great question. Your daughter would be able to write off those courses, since they're helping her grow her existing wellness business instead of branching off as a marketer or something. The Tax Court actually once allowed a nurse to write off MBA tuition on the grounds that her program made her better at interacting with doctors and commanding their respect! So you're not limited to writing off courses that are strictly related to the field you're working in - it's also about your intent in taking the course. Best of luck to your daughter as she grows her business!
Thanks for such a helpful video! I am still trying to figure out write-offs within my line of work in wardrobe styling though. A big component for me in what I do is buying/ renting clothing for test shoots to build up my portfolio to gain paying jobs. Since this clothing is a tool in this case, can it be written off? Thanks so much for your help!
Hi, Isa! Clothing write-offs can be tricky. In this case, it depends on whether you're buying these clothes for you to wear, or for a client. In the latter case, you'd be able to write them off freely. But if the clothes are for you, they'd have to be unsuitable for non-work use to be tax-deductible!
Hi, just came across your video. I just started my business but still work from home most of the time although i pay for rent at a office. I had a Christmas team party for my business partners and bought gifts for them. Is that considered a business write off. Also i am tryin to figure out how to write out my home office as well as paid office.
Hi Delia! Yes, you can write off tolls you pay during business-related travel. Here's a guide to car-related expenses that might be helpful: www.keepertax.com/posts/freelancers-guide-to-writing-off-car-expenses
Hi! A tax write-off is a business expense that you can deduct to lower your taxable income. For example, if you make $10,000 in a year but spend $2,000 on eligible business expenses, you'll only pay taxes on $8,000. Hope that helps!
Great question! For tax purposes, church tithings are treated just like charitable donations. That means they generally count as an itemized personal deduction, meaning you can't take them if you take the standard deduction. For the 2021 tax year, though, there are special rules in place for charitable donations. Even if you do take the standard deduction, you can claim up to $300 for cash donations to a church if you're single, or $600 if you're married and filing jointly! Here's more on that from the IRS: www.irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-during-2021-deductions-up-to-600-available-for-cash-donations-by-non-itemizers
Good question, Oneill! It sounds like you're asking about solo lunches - lunches you eat with coworkers and industry contacts while talking shop are always deductible. For meals you eat alone, though, it depends on what you do for work. But unfortunately, the answer's generally no. You can only write off lunch if you're required to eat it while working. An example would be a security guard who brings a packed lunch because he can't leave his post all day. Here's an article where you can learn more: www.keepertax.com/posts/freelancers-guide-to-the-business-meal-deduction
Hey! When you file your taxes, you'll want to fill out a form called Schedule C to claim all your write-offs. Here's an article where you can learn more: www.keepertax.com/posts/schedule-c If you're self-employed and don't want to mess with filling out all your tax forms by yourself, you can file through Keeper. Just use the app to track your write-offs, and it'll automatically pull it into your Schedule C when you file! You can get started with it here: keeper.tax/e/find-write-offs
I am doing permanent Jewelry and is it possible for me to get a tax write off by adding a service fee to each of my pieces? Since it would be considered as a service done and not a product sold would that count? Also would it have to be put into the receipt as a service fee or is there a way I can say that x% is a service fee when it comes to tax season?
Hello! Tax write-offs are generally purchases you've made in order to run your business. For instance, if you pay fees to a payment processor you use to charge customers, those fees are tax-deductible. However, fees that your customers pay are not tax-deductible. Hope this helps, and thanks for watching!
I’m a bit confused where exactly to put down my phone and internet bill expense. One of keeper tax said to put it under utilities schedule C. But I thought that utility section was for only if you have a dedicated office space which I don’t. Another article said to put it under “other expenses”. I’m not claiming the home office deduction because I don’t have any home expenses. Can you clarify please? Also, for putting down the grand total for utilities do I just add up both of the percentages of business use for phone/wifi and that what’s I would put. Or do add one at a time in different sections
Hi George! If you're not claiming a home office space, you'll report your income and business write-offs using Schedule C. Wi-Fi is a utility, so you'll account for it on line 25. Using this method lets you skip Form 8829, which you’d have to fill out to take the home office deduction. More here: www.keepertax.com/posts/how-to-deduct-internet-expenses
Yes! If you're traveling for business purposes away from your tax home, you can write off those meals. (That's as long as the client you're traveling for doesn't reimburse you for them!)
Hello you are pretty, I have a question as a distributor which does fall under a independent contractor/ 1099. Can you do a tax write of for buying the starter product kit which does involve the business it helps market the business and have potential customers?
Good question, Daeveon! You can treat the starter product kit as an investigative startup cost and start writing it off when you officially open for business - that is, once you start really actively trying to get customers. You'll be able to write off up to $5,000's worth in that first year you're in business. You can read more about startup costs here: www.keepertax.com/posts/startup-costs
Hey, Tashara! Bad news - if the makeup and wardrobe are suitable for everyday use, the IRS probably won't go for it. There have been a few court cases in the past when the US Tax Court ruled against taxpayers (often news anchors) who had to supply their own, unreimbursed wardrobe and makeup for work. You can read more about them here: www.keepertax.com/posts/haircut-tax-deduction If you get stage makeup from, say, a specialty store that's too heavy for ordinary use, though, that would be a legit write-off! The key question to ask is, can you wear the outfit and the makeup off the clock without anyone thinking it's weird?
Great question! Receipts, online banking statements, and credit card statements work well for this. So do electronic records from the Keeper app, which will pull and organize that information for you. You can try it out here (we have a free trial!): keeper.tax/e/find-write-offs The thing is, you should have access to these records, but you don't need to actually attach them when you submit your taxes. You just hang on to them on the small chance that you get audited. To actually claim the write-offs, you just fill out Form Schedule C and attach it to your tax return. Here's an article that explains how to do this: www.keepertax.com/posts/schedule-c Or you can file your taxes through the Keeper app, and it'll take care of this for you!
Hi, Sky! Yes, you can absolutely use emailed receipt! In fact, in most cases, you can actually use bank statements or credit card statements. Check out this video to learn more: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cgNQ0O40FpE.html
thank you for your videos!! I'm a 1099 contractor and U.S. citizen living abroad do you have any advice? I also believe I read on the IRS website that there is leinency when you're filing for the first time as a 1099 contractor; do you know if it's true? I'm afraid I am going to miss the January 15th filing deadline but I am not sure if it's that much of a concern? thank you!!
Hi I have a regular job and I'm also starting my business as self employed. I have a candle business and I do work from home can I include my rent as a write off? Also how to I file my regular taxes while also being self employed.
Hi! Both good questions. If you do work for your candle business exclusively from home, you can write off a portion of your rent as a home office deduction. There are a few other rules - chiefly that you need a dedicated workstation at home (so, you can be assembling candles in the kitchen where you also cook). You can learn more here: www.keepertax.com/home-office-deduction As for filing your regular taxes, you can do that as usual through your 1040 tax return! Based on what you're telling me, it sounds like you're a sole proprietor, which means you'll file your candle business taxes as part of your personal tax return. You'll just have to fill out Form Schedule C when you do your taxes - you'll report your business income and write-offs there!
Hi, Kit! You'll have to fill out Schedule C, which you'll attach to your 1040 when you file. Your expenses go on Part II of the form. Here's an article that walks you through how to fill it out: www.keepertax.com/posts/schedule-c
Hi, there! Are you asking about writing off payroll expenses for an employee based outside the country? Or are you yourself living abroad and hoping to write off your expenses?
hey since im working from home how do i write off rent per sq. ft. since im only doing business in my room and you have really been very helpful ty so much .... also is it possible to write off your service company "Tax Keeper" for helping me maintain expenses?
Hi! To write off rent, you'll need to use a dedicated space in your home for work only. (It doesn't have to be a whole room, it can be a corner of a room!) Here's more info on how to take the deduction: www.keepertax.com/posts/rent-as-a-tax-deduction
Good question! In that situation, you end up with a business loss. You can use it to offset your taxable income from other sources, like a W-2 job. For example, pretend you have a day job that pays you $30,000, a new business that brought in $1,000, and $3,000 in write-offs. You have a $2,000 business loss, which brings you your taxable income from your day job down to $28,000. We actually have a video on this: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-A_f87K3ZtB4.html There's also this article where you can learn more: www.keepertax.com/posts/business-losses
Hi, Nancy! Are you already using the Keeper app? If so, you can ask your tax assistant for help right in the app, or send an email to support@keepertax.com. Otherwise, you can download the app to get tax help: keeper.tax/e/find-write-offs
Hi, Maria! Great question. Unfortunately, beauty write-offs are tricky. Even TV anchors who appear on camera have a hard time getting those write-offs approved. In general, they're only a sure bet if it's the kind of thing that you couldn't also use outside of work - like a crazy manicure for a photoshoot. If you'd like to learn more, here's an article about beauty-related write-offs: www.keepertax.com/posts/haircut-tax-deduction
So I just started my freelance video and photo business. Since I am not making a ton of money right now (2022 expected earnings to be $1k-$2k) and I were to write off a camera I bought, or a computer for editing, and it was equal or more than my earnings, would the IRS just not see my earnings as taxable income? (Note: I am a total noob when it comes to taxes)
Hey, Ben! That's right: if you expenses are enough to basically "cancel out" your income, you just won't get taxed. It's super common for people who are just starting out to earn almost nothing - or even lose money! And you can actually take your business losses and claim them as a tax write-off in a future year, when you're making more. Here's an article where you can learn more about how that works: www.keepertax.com/posts/business-losses
Hi, Shelton! We've got an app that use you can to file your taxes. It's specifically designed for freelancers and independent contractors, so it's a lot more customized than something like TurboTax. Check it out here: keeper.tax/e/find-write-offs
Hi, Jay! Great questions. Beauty supplies actually CAN be a write-off for professional makeup artists - they're an exception to this general rule of thumb! Writing off clothes as a public speaker is tricky. They would need to be clothes that aren't suitable for everyday wear. So a suit, for example, generally wouldn't be a write-off. However, branded clothing - like a shirt with your logo on it - COULD be written off. Here's a video that talks about clothing write-offs in more detail: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YB-lisVXtJU.html
The intro is too long! The background music makes the video unwatchable! As a creator knowing that you put hours of works into creating this just to destroy the entire video due to high background music is painful!
Thanks for the feedback! We've heard this a couple of times before, so we've transitioned to quieter music and generally snappier intros in more recent videos. Hope you keep watching and see how we continue to learn and improve
