Or maybe you have an online store selling miniature hats for cats - your online advertising, hat-making materials, and other expenses can be deducted from your taxable income.ĭepending on the nature of your business, many purchases and expenses can be written off, including: “That’s fine for a big trucking company, but what’s a tax write-off and how does this apply to me?” Well, because you’re an independent worker, many of the same financial tools available to that large corporation are also available to you!įor instance, if you’re a rideshare driver, your mileage and gas expenses, as well as any payments you made for licensing or maintenance, can be at least partially written off. This is because you typically only owe taxes on your net, or post-expense, earnings. When tax season rolls around, that company can write off a large portion of these expenses against their gross, or total, earnings. ![]() If a shipping company owns 30 trucks, then every year, they will incur a number of (very large) expenses related to those trucks, like regular maintenance, registrations, tolls, and parking fees. The best way to explain this is to think big. ![]() We put together this guide to help you maximize your tax savings and stay organized as you enter the exciting world of running your own business. We know you’ve got a lot on your mind - big responsibilities come with the freedom of an independent worker’s lifestyle. So, what’s a tax write-off and how does a tax write-off work? Well, you’ve come to the right place. How Does the Stride App Help Track Independent Contractor Expenses?Īre you an independent worker? Congrats on joining a growing rank of Americans who have taken their financial destiny into their own hands! Whether you’re a gig worker, rideshare driver, 1099 employee, freelancer, or you just started your own online store, you are now your own boss - how exciting is that? Of course, that means you also have to be your own business, so it’s important to stay on top of the little details like expenses and tax write-offs. What Paperwork Do I Need for Tax Write-Offs? When tax season rolls around, you’ll want to have all your expenses and earnings in one place instead of chasing down receipts and invoices at the last minute. It’s important to track all your business-related expenses so you can accurately claim your tax write-offs. Tax write-offs are essential to maximizing your tax savings as an independent contractor. ![]() Tax deductions (also known as “tax write-offs”) are business-related expenses that can be subtracted from your taxable income, lowering your tax liability.
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