It is the time of the year, as the snow melts everyone is getting ready to file their taxes. If you are self employed like me, this time of year might scare you a little. I know it does me. This year I have partnered again with TurboTax Canada to bring my readers and those that participate in the #CDNmoney chats on Tuesdays the latest information when it comes to taxes.
This Tuesday night, March 29th is our first chat and we are talking with freelancers about taxes. One of the things I do love about using the TurboTax software is that it is so easy to use. It provides the self employed blogger like me extra guidance as we walk through things like self employment income and deductions. It helps you file your personal and unincorporated business taxes together.
When it comes to all those deductions we can claim there are clear paths to claiming old space, travel expenses and vehicle expenses. If there is an expense you can claim this software knows about it.
Even if you run into an issue I love that there is free tech support. What are some of my top tips for my fellow freelancers?
1. Save ALL your receipts and invoices.
The government requires that you provide receipts and invoices. If you are audited you need to be able to back up your claims. No guess work allowed.
2. Set a budget for taxes.
Unlike salaried employees, you are not paying deductions for things like income tax, CPP or EI. You need to contribute the employee portion of these which can prove costly. A good standard to go by 30% of your income.
3. Contribute to your RRSP.
Freelancers can not rely on the company retirement plan. They need to have a retirement plan of their own.
4. Home Office Deduction
Be careful with this one, make sure your deduction is reasonable. If your office space takes up 20% of your housing space then that is what you claim. Some of the extra things you can claim internet, phone, home insurance, heat and hydro.
Now, if you are like me you always have questions when it comes to tax time, so I am hoping over the next month as we talk taxes with my friends at TurboTax for the #CDNmoney chat each week you will join the conversations.
You can even win tax software! Each week, TurboTax will be giving away 4 downloads of their software, that will definitely come in handy as you get ready to file yours. This week 4 people will win a copy of the Home & Business edition.
Hope to see you tweeting with us this Tuesday March 29th at 7pm EST. No RSVP required!
Want more advice for Freelancers from TurboTax check out this page.