As a designer, whether you're self-employed or freelance, there are numerous tax write-offs and deductions you can take advantage of. These can significantly reduce your taxable income, leaving more money in your pocket. Here's a list of potential deductions to consider.
Whether you're wining and dining a potential client or grabbing a quick bite while working on a project, your business meals can be a deductible expense. Just make sure to keep your receipts and note the business purpose of the meal.
How to write it off: Report this on Schedule C, Box 24b on your tax return.
If you use your car for business purposes, such as meeting clients or transporting design materials, you can deduct the cost of car insurance and registration. Remember, the deduction is proportional to how much you use the car for business.
How to write it off: Report this on Schedule C, Box 15 on your tax return.
Regular maintenance to keep your vehicle in good working order can also be a tax write-off if you use your car for business. This includes oil changes, tire rotations, and other routine maintenance.
How to write it off: Report this on Schedule C, Box 9 on your tax return.
If you've purchased a car primarily for business use, you can write off a portion of the cost through depreciation. This allows you to spread the cost of the car over several years.
How to write it off: Report this on Schedule C, Box 13 on your tax return.
If you hire other creatives to help with your projects, their fees can be a tax write-off. This could include graphic designers, copywriters, or web developers.
How to write it off: Report this on Schedule C, Box 11 on your tax return.
As a designer, you likely use a lot of digital storage for your work files. The cost of cloud storage services or external hard drives can be written off.
How to write it off: Report this on Schedule C, Box 18 on your tax return.
Any software you use for your design work, from Adobe Creative Suite to Sketch, can be a tax write-off. This includes both purchase costs and subscription fees.
How to write it off: Report this on Schedule C, Box 18 on your tax return.
If you purchase digital assets for your design work, such as stock photos or fonts, these can be written off. Just make sure to keep a record of these purchases.
How to write it off: Report this on Schedule C, Box 27a on your tax return.
Computers, tablets, and other electronic devices used for your design work can be written off. You can either deduct the full cost in the year of purchase or depreciate the cost over several years.
How to write it off: Report this on Schedule C, Box 18 on your tax return.
If you work from home, the cost of furniture for your home office can be a tax write-off. This includes desks, chairs, and other necessary furniture.
How to write it off: Report this on Schedule C, Box 18 on your tax return.
If you travel for business, such as to attend a design conference or meet with a client, you can write off the cost of your meals. This includes both meals eaten alone and those with clients or colleagues.
How to write it off: Report this on Schedule C, Box 24a on your tax return.
Office supplies used in your design work can be written off. This includes everything from paper and pens to printer ink and notebooks.
How to write it off: Report this on Schedule C, Box 18 on your tax return.
If you advertise your design services online, the cost of these ads can be a tax write-off. This includes ads on social media, search engines, or other websites.
How to write it off: Report this on Schedule C, Box 8 on your tax return.
Parking fees incurred for business purposes can be written off. This includes parking at client meetings, business events, or your regular place of work.
How to write it off: Report this on Schedule C, Box 27a on your tax return.
If you create marketing materials to promote your design services, the cost of these can be a tax write-off. This includes business cards, brochures, or promotional videos.
How to write it off: Report this on Schedule C, Box 8 on your tax return.
If you work from home, a portion of your power bill can be written off. The amount is based on the percentage of your home used for business.
How to write it off: Report this on Form 8829 on your tax return.
Costs related to professional development, such as courses, workshops, or conferences, can be a tax write-off. This can help you stay current in your field and improve your skills.
How to write it off: Report this on Schedule C, Box 27a on your tax return.
If you work from home, a portion of your property insurance can be written off. This is based on the percentage of your home used for business.
How to write it off: Report this on Form 8829 on your tax return.
If you make repairs to your home office, these costs can be a tax write-off. This includes both minor repairs and major improvements.
How to write it off: Report this on Schedule C, Box 21 on your tax return.
If you pay tolls while driving for business, these can be written off. This includes tolls on highways, bridges, or tunnels.
How to write it off: Report this on Schedule C, Box 27a on your tax return.
If you travel for business, your transportation costs can be a tax write-off. This includes airfare, train tickets, or car rental fees.
How to write it off: Report this on Schedule C, Box 24a on your tax return.
If you stay overnight while traveling for business, your lodging costs can be a tax write-off. This includes hotels, motels, or other accommodations.
How to write it off: Report this on Schedule C, Box 24a on your tax return.
If you need a tool kit for your vehicle for business purposes, the cost can be a tax write-off. This could include tools for minor repairs or emergency situations.
How to write it off: Report this on Schedule C, Box 22 on your tax return.
If you work from home, a portion of your water bill can be written off. This is based on the percentage of your home used for business.
How to write it off: Report this on Form 8829 on your tax return.
If you have a website to showcase your design work or to attract clients, the cost of the website and its hosting fees can be a tax write-off.
How to write it off: Report this on Schedule C, Box 8 on your tax return.
If you work from home, a portion of your Wi-Fi bill can be written off. This is based on the percentage of your home used for business.
How to write it off: Report this on Schedule C, Box 25 on your tax return.