How to get the highest tax return as a freelancer in 2024

According to research performed by McKinsey, 36% of employed Americans self-identify as independent workers. With the freelance economy flourishing, and contract roles being just as prevalent as full-time employment, tech professionals are increasingly opting for gig and contract roles, appreciating the flexibility and diversity of projects. However, this shift brings its set of challenges, especially when it comes to doing your taxes.

Since the tax filing deadline is coming up on April 15, 2024, we brought in a freelance tax expert to answer all your questions about how to get the biggest tax return, what special tricks freelancers need to be taking advantage of, and what are the ‘audit me’ red-flags to avoid. 

Key Points from the Video:

• Maximize Deductible Expenses: Thoroughly categorize and deduct legitimate business expenses, including home office costs, software subscriptions, and equipment purchases. This reduces taxable income and increases tax return potential.

• Utilize Retirement Savings Plans: Contributions to retirement savings accounts like SEP IRAs or Solo 401(k)s not only secure your future but also lower your current taxable income.

• Health Insurance Deductions: Freelancers paying for their own health insurance can often deduct premiums, decreasing their taxable income.

• Keep Impeccable Records: Maintain detailed records of all receipts and transactions related to your freelancing business. This diligence supports your deductions and can be crucial in case of an audit.

• Take Advantage of Education Expenses: Deductions for education and training related to your freelancing work can also reduce your taxable income. This includes courses, workshops, and books.

• Quarterly Tax Payments: Making accurate estimated tax payments quarterly can help avoid underpayment penalties and manage cash flow more effectively throughout the year.

By applying these strategies, freelancers can not only stay compliant with tax laws but also enhance their financial outcomes, keeping more of their hard-earned money. Want to ask Deb any tax questions we missed? Shoot her an email: deb@individualtaxservice.com or connect on LinkedIn.

How Techtrust Can Help:

Beyond connecting you with leading FinTech opportunities, Techtrust is committed to supporting freelancers through resources and partnerships that empower you to manage the business side of your tech career effectively. From understanding your contract to managing your finances, we're here to help ensure your freelance journey is both rewarding and stress-free.

As the tech industry continues to evolve, embracing the gig economy can offer unparalleled opportunities for growth and flexibility. By staying informed and proactive about your tax responsibilities, you can ensure that freelancing remains a lucrative and fulfilling path. Trust Techtrust to be your partner in navigating the complexities of the tech freelance market.

Whether you're seeking your next gig or need advice on managing your freelance career, visit Techtrust.com to discover how we can support your journey in the tech industry.