Tips on working with CPAs to file self-employment tax forms

Tax time is coming, and for freelance workers, it is proof of how well your record-keeping skills are. Travel costs, meals, profits from different clients, office supplies, advertising costs and technical supplies must all be accounted for when filing for self-employment tax.

Importance of record keeping when filing for self-employment tax

Net earnings from self-employment tax must be filed if you make over $400. But for those of you who think you may be in the clear if you made less than $400, this is a good time to speak with a certified public accountant about any other filing requirements from the Form 1040 instructions to make sure you don’t have to file anyway. Here are the types of expenses and profit details that must be accounted for on self-employment tax forms.

Finding a CPA who understands your professional expenses

Freelancers shouldn’t just look for a CPA who lives nearby. From CPA firms in Las Vegas to CPA firms in Texas, the bigger point should be finding a CPA who knows what expenses are taxable for your freelance profession. They must also be valid. For example, a freelance journalist who wants to add a monthly mobile phone bill as an office expense may be ineligible if you use it for social purposes, too. Your CPA should be able to tell from your paperwork which items are legitimately work-related tax deductions or profits.

Count up all companies for profits

As a freelancer who works with multiple clients, it’s much easier to remember client profits in December than it is in January. This is a good time to verify past payments in cash, checks or electronic sites like PayPal to make sure all amounts are accounted for. While not every company may send a Form 1099-MISC, adding all of those small amounts together may still add up to $400 or more.

Keep track of valid expenses

Computer paper, postage stamps, public transportation and gas expenses, business lunches and professional website renewal all may be counted as financial expenses for self-employment work. The same goes for freelancers’ expenses while looking for full-time work: including travel expenses for job interviews. Make sure to have a paper trail for CPAs to help explore expenses and profits to make sure that the final taxable amount is accurate.