As per Taxlawsinusa, a freelancer programmer in the USA, you can deduct business expenses on your tax return to reduce your taxable income. Here are some common business expense deductions for freelance programmers:
Business Use of Home
1. Home Office Deduction: Deduct a portion of your rent or mortgage interest and utilities as a business expense.
2. Simplified Option: Use the simplified option to deduct $5 per square foot of home office space, up to a maximum of $1,500.
Business Equipment and Software
1. Computer and Accessories: Deduct the cost of computers, laptops, tablets, and accessories.
2. Software and Subscriptions: Deduct the cost of software, programming tools, and subscription services.
3. Printers and Scanners: Deduct the cost of printers, scanners, and other office equipment.
Travel Expenses
1. Transportation: Deduct the cost of transportation, including gas, tolls, and parking.
2. Meals and Lodging: Deduct the cost of meals and lodging while traveling for business.
3. Conferences and Workshops: Deduct the cost of attending conferences, workshops, and seminars.
Business Insurance and Benefits
1. Liability Insurance: Deduct the cost of liability insurance to protect your business.
2. Health Insurance: Deduct the cost of health insurance premiums for yourself and your family.
3. Retirement Plan Contributions: Deduct contributions to a SEP-IRA or solo 401(k) retirement plan.
Education and Training
1. Courses and Workshops: Deduct the cost of courses, workshops, and training programs.
2. Certifications and Licenses: Deduct the cost of certifications, licenses, and professional memberships.
3. Books and Subscriptions: Deduct the cost of books, magazines, and online subscriptions related to your business.
Miscellaneous Expenses
1. Office Supplies: Deduct the cost of office supplies, including paper, pens, and toner.
2. Shipping and Postage: Deduct the cost of shipping and postage for business-related mail.
3. Bank Fees: Deduct the cost of bank fees, including ATM fees and overdraft charges.
Record-Keeping Requirements
1. Keep Accurate Records: Keep accurate records of all business expenses, including receipts, invoices, and bank statements.
2. Use Accounting Software: Use accounting software, such as QuickBooks or Xero, to track business expenses and income.
3. Consult a Tax Professional: Consult a tax professional or accountant to ensure you are taking advantage of all eligible business expense deductions.