If you're a self-employed or freelance interior designer, there are a plethora of tax write-offs and deductions available to you. These can significantly reduce your taxable income, potentially saving you a lot of money. Here's a handy guide to help you understand what you can claim.
As an interior designer, advertising is crucial to attract new clients and showcase your work. This could include anything from online ads to print media or even billboards. Remember, the cost of advertising your services is fully deductible.
How to write it off: Report it on Schedule C, Box 8 of your tax return.
Meeting clients over meals or coffee is a common practice in the interior design industry. Whether you're discussing project details or building relationships, these meals are a necessary business expense. Just make sure to keep your receipts!
How to write it off: Include these expenses in Schedule C, Box 24b of your tax return.
Do you use your car for business purposes? If so, you can deduct the costs of car insurance and registration. This includes trips to meet clients, visit project sites, or even drive to the store for supplies.
How to write it off: Report these expenses on Schedule C, Box 15 of your tax return.
Keeping your vehicle in top shape is essential, especially if you use it for business. You can deduct expenses related to car maintenance, such as oil changes, tire rotations, and other routine services.
How to write it off: Include these costs on Schedule C, Box 9 of your tax return.
If you've purchased a car primarily for business use, you can write off its cost over time through depreciation. This can be a significant deduction, especially for luxury vehicles used to impress clients.
How to write it off: Report this on Schedule C, Box 13 of your tax return.
As an interior designer, you may occasionally need to hire additional help for larger projects. Whether it's a freelance designer or a temporary assistant, you can deduct these costs.
How to write it off: Include these expenses on Schedule C, Box 11 of your tax return.
Need a fresh perspective or specialized skills for a project? Hiring creative assistance, such as a graphic designer or photographer, is a deductible expense.
How to write it off: Report these costs on Schedule C, Box 11 of your tax return.
From CAD programs to photo editing software, digital tools are a must for modern interior designers. You can deduct the cost of purchasing or subscribing to these tools.
How to write it off: Include these expenses on Schedule C, Box 18 of your tax return.
If you work from home, your office furniture is a necessary business expense. This includes your desk, chair, and any other furniture used exclusively for your business.
How to write it off: Report these costs on Schedule C, Box 18 of your tax return.
As an interior designer, you likely have a collection of fabric swatches, paint samples, and other materials. These are considered inventory and can be deducted as a cost of goods sold.
How to write it off: Include these costs on Schedule C, Box 36 (COGS) of your tax return.
Traveling for business? You can deduct 50% of your meal expenses while on the road. This includes meals eaten alone or with clients.
How to write it off: Report these expenses on Schedule C, Box 24a of your tax return.
From paper and pens to staplers and tape, office supplies are a necessary expense for any business. Keep track of these costs and deduct them at tax time.
How to write it off: Include these costs on Schedule C, Box 18 of your tax return.
Parking fees incurred while conducting business can be deducted. This includes parking at client meetings, project sites, or even your local office supply store.
How to write it off: Report these expenses on Schedule C, Box 27a of your tax return.
If you work from home, a portion of your power bill can be deducted as a home office expense. The amount you can deduct depends on the size of your home office compared to the rest of your home.
How to write it off: Include this expense on Form 8829 of your tax return.
Software that helps you stay organized and manage your business, like project management tools or accounting software, is a deductible expense.
How to write it off: Report these costs on Schedule C, Box 18 of your tax return.
If you have property insurance for your home office, you can deduct a portion of the cost. The deductible amount is based on the size of your home office in relation to your entire home.
How to write it off: Include this expense on Form 8829 of your tax return.
Repairs to your home office or any other property used for business are deductible. This includes everything from fixing a leaky faucet to repainting your office.
How to write it off: Report these costs on Schedule C, Box 21 of your tax return.
Books that you use for business, such as design reference books or industry publications, can be deducted. Just make sure they're used exclusively for business!
How to write it off: Include these costs on Schedule C, Box 27a of your tax return.
If you pay tolls while traveling for business, these costs can be deducted. This includes tolls paid for highways, bridges, or tunnels.
How to write it off: Report these expenses on Schedule C, Box 27a of your tax return.
Subscriptions to trade journals or other industry publications are a deductible expense. These resources keep you informed about the latest trends and developments in interior design.
How to write it off: Include these costs on Schedule C, Box 27a of your tax return.
Transportation costs related to your business are deductible. This includes public transit fares, taxi rides, or even airfare for business trips.
How to write it off: Report these expenses on Schedule C, Box 24a of your tax return.
If you travel for business and need to stay overnight, your lodging expenses can be deducted. This includes hotels, motels, or even Airbnb rentals.
How to write it off: Include these costs on Schedule C, Box 24a of your tax return.
If you need a tool kit for your vehicle for business purposes, such as for site visits or installations, you can deduct the cost.
How to write it off: Report this expense on Schedule C, Box 22 of your tax return.
If you work from home, a portion of your water bill can be deducted as a home office expense. The deductible amount is based on the size of your home office in relation to your entire home.
How to write it off: Include this expense on Form 8829 of your tax return.
Having a professional website is crucial for any interior designer. The costs of maintaining your website, including hosting fees and domain registration, can be deducted.
How to write it off: Report these costs on Schedule C, Box 8 of your tax return.
If you use Wi-Fi for business purposes at home, you can deduct a portion of your Wi-Fi bill. The deductible amount is based on how much you use it for business versus personal use.
How to write it off: Include this expense on Schedule C, Box 25 of your tax return.