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If you’re a gig worker, you’re self-employed, or you take on freelance jobs, you should be aware of tax deductions that could save you money when it comes to filing your tax return. Many people, as this infographic confirms, end up paying more in tax because they’ve missed write offs they could have claimed.
What Are The Most Commonly Missed Tax Write Offs?
As you can see from the infographic, the most commonly missed deduction is phone expenses. If you use your phone for business purposes, for example, to discuss jobs or provide quotes, you can claim the portion of your phone bill that is spent making and taking work calls. Twenty-three percent of gig workers don’t claim for phone bills, with the average individual overpaying by $112. Another frequently missed deduction is software. If you pay for cloud storage, for example, you should factor this in when adding up your expenses. The average gig worker overpays by $36.
If you drive a car for work, you may keep gas receipts, but are you claiming for your car insurance? If you don’t list this is a deduction, you could end up overpaying by around $154. Dining out for work purposes, for example, meeting clients, can also count as a deductible expense, but 16% of workers do not claim for business meals. More than 10% of gig workers overpay for travel, and the average overpayment for buying electronics is $123. Next time you buy or pay for something for business, make sure you keep receipts and factor in these expenses when you submit your next tax return.
INFOGRAPHIC: Most Commonly Missed Tax Write Offs
Infographic Design By most commonly missed tax write offs