Free tax advice from your anarchist accountant:
(USA federal income tax)(1099 NEC) If you are self employed and work from home, measure the square footage of your 'home office' (or whatever your workspace is), find out what percentage it is of the square footage of your house, and deduct that percentage of your annual rent and all of your utility bills for the year from your taxes as a work expense.
(USA federal income tax) If you are taking classes check and see if you qualify for the AOTC tax credit. You don't need a form 1098T from your school necessarily, (most schools will not make these available to you until Jan 31st), but you can claim up to a $2,500 deduction on tuition expenses, text book expenses, and other school supplies like computers.
(USA general advice) If you are paying someone for a product on venmo, no you're not. Use like a pizza emoji or something in the description and never check the box that says you're purchasing a product. That's extremely rude and tells venmo to report the money you gave that person as taxable income. So rude, don't do it, especially at like fundraisers, bake sales and shit like that.
Fuck turbo tax. Use Freetaxusa if doing your own taxes. (free USA federal income tax filing and state tax filing for like $20)
Every tax dollar you manage to get back in refunds is a dollar you took away from the American war machine.
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@temerity
What I've been told about deductions based on the square footage of the home office is that freelancers are already the most likely to get audited, and that you have to be really careful about how much square footage you include, calculate whether you use that space for things other than work, etc., or risk serious problems if that audit ever happens.
Are those concerns reasonable or just paranoid?
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@ThatWeltschmerz it's always reasonable to be concerned about auditing but I know several independent contractors who have never had an issue. The key is not to get blatant and claim more than a reasonable area of your home. Like if I have a home office in part of my living room, I might also play video games at that desk but if I were to be audited there'd still be a work desk, a work computer and a work printer there. Does that make sense?
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@temerity It does, thanks!
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