by Sherry Heyl
It’s tax time and if you are a freelancer that means wearing you bookkeeper and accounting hats.
This time of year is simplified if you are using an accounting software system such as Freshbooks and keeping it updated consistently.
The big news this year is that there are new tax laws and how those laws affect your taxes will impact how you manage your bookkeeping. For example, no need to keep track of any moving expense. No moving expenses can be deducted for tax purposes. The act suspends the deduction for moving expenses after 2017 (except for certain members of the Armed Forces) and suspends the tax-free reimbursement of employment-related moving expenses.
Taking your client out just go a bit more expensive. Deductions for business entertaining are gone. Businesses have typically been able to deduct 50% of the cost of entertainment related to the active conduct of a business.
Team perks are also taking a hit. The deduction businesses can claim for small meal expenses (e.g., providing coffee and bagels in the break room as an employee “perk”) is reduced from 100% to 50% and completely eliminated in 2025.
Do have more questions about how your taxes have been impacted? Join Freelancers Union Local Sparks on Wednesday, March 7 for their annual Tax Workshop. Click here to find one near you.