10 Tax Write-Offs for Your Creative Business to Keep More Money in Your Pocket
As you embarked on your small business adventure, you might have been surprised by the number of expenses that came along with it.
Heck, you may have even gotten confused while bookkeeping, trying to Google search what certain tax categories your expenses should fit into. Let’s be real, it’s kind of a nightmare.
Let’s dive in today to discover a few of the most popular expenses you can claim as a tax write-off in your creative business.
10 Tax Write-Offs for Small Business Owners
1 | Meals
Did you know that meals are 100% deductible for tax year 2021 & 2022? That’s right, the meal that you just had with your client is fully deductible as opposed to only being 50% deductible.
2 | Software
When you get serious about producing high-quality work as a creative entrepreneur, your software capabilities need to level up. Those monthly subscription fees for things like Adobe, Photoshop, and Dubsado will add up, but they 100% count as a tax-deductible expense.
Source: Schitt’s Creek
3 | Home office
Fun fact: You can also write off the home office you are working in right now. Just make sure you are doing in compliance with the IRS standard on what is considered a home office.
4 | Education
Whether you’ve enrolled in a mastermind, hired a private coach, or taken any online courses to hone your craft, you can claim all of those expenses on your taxes.
5 | Gifts
Do you send welcome packages to your clients or thank-you gifts to anyone on your team? Save those receipts! You can claim up to $25 per gift per year as a tax-deductible expense.
6 | Local travel
Keep track of your mileage when you head off to your next client photoshoot or work from a coffee shop. You can also claim the expense of filling up with gas when you regularly use your vehicle to drive for business deliveries or other tasks.
7 | Phone and internet service
If you’re running a business in 2022, having a phone and good internet is just part of the deal. You can also claim a percentage of your monthly cell phone bills and internet provider charges.
8 | Start-up expenses
If you’re within your first year of business, you’ve likely incurred expenses like legal fees while registering your business as an LLC, purchasing computer equipment, or purchasing a desk or other office supplies. Be sure you have all of this documented (including keeping track of your receipts!) so you can claim these deductions.
9 | Marketing
Your premium Canva membership, printed business cards and flyers, any ad-hoc work you’re hiring a graphic designer for, and anything else you use to market or advertise for your business counts as a deduction.
10 | Contract labor
Maybe you’ve gotten to the point where you’re overwhelmed by your to-do list and have considered hiring a part-time contractor as a virtual assistant, copywriter, bookkeeper, online business manager, or graphic designer. You can claim all of your contractor payments as an operating expense and tax deduction, even if you’re not ready to hire someone full-time.
