Tis the season! - Tax Season!
Are you taking advantage of the tax breaks available to you as an independent contractor? Our team put together a list of Do's and Don'ts to help maximize your taxes.
DO - Track your mileage - Your home is your office. Track every mile from your house to your pick up location, drop off location, and back!
DO - Track your purchases - Everything from your gig work can be written off. This includes tolls, bags, and gear. If you purchased anything from the DeliverThat shop, write it down!
DO - Separate business with pleasure - Consider getting a credit card just for gig work. This easily segments your purchases and makes documenting a lot easier!
DO - Keep your records - The IRS can audit up to 3 years later. If they discover fraud, they can audit up to 7 years later.
DON'T - Over write off - The number one item that the IRS audits is independent contractor work!
DON'T - Choose the wrong option - The standard mileage rate for 2022 58.5 cents per mile. If you drove 10,000 miles doing gig work, your deduction would be $5,850. If you spent $10,000 on your vehicle expenses and only used your vehicle for 50% gig work, your deduction would be $5,000. Make sure to choose what is right for you!
DON'T - File late - Deadline for this year is Tuesday, April 18!
⚠️DeliverThat and our employees are not tax professionals. We recommend contacting a CPA for tax advice⚠️
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