Your Guide To Top Tax Deductions For Fashion Freelance Professionals
Being a freelancer in the fashion industry is exciting! Freelancing offers many opportunities. You can set your own hours, work on projects you are most passionate about, and be your own boss. It also comes with its own set of challenges. Tax preparation is one of them! Many freelancers don’t understand what tax deductions they are entitled to, or what is a reasonable expense for their business.
Freelancers in the fashion industry have the potential of writing off many tax deductions via their work expenses. Do you have a freelance business and want to know if you qualify for some of these tax deductions? To find out, I asked Susan Lee, a Certified Financial Planner™ in New York City, who specializes in working with freelancers, artists, writers, etc.
We couldn’t cover every possible angle of the fashion freelance business in just one post! This article is part of a 5 part Fashion Freelancer Business Series. If you are considering freelancing check out the other articles that are part of this series at the bottom of the page.
Who Can Take These Deductions?
When we talk about freelancers I am referring to people who are independent consultants. They are hired on a contract basis for a set period of time or for a particular project. They usually file their taxes with a 1099 form; NOT the general W2 that you would receive from an employer.
There are a lot of different types of freelancers in the fashion industry. Below is a list of the most common types:
- Designers/ Technical Designers
- Make-up artist/ hair stylist
- Public Relations/ Publicist
- Writer/ Editor/ Author
- Fashion Show producer
Most Common Tax Deductions For Freelancers
This is a basic list of typical expenses incurred by freelancers in the fashion industry. You may have others. This list was curated by Susan Lee EA, CFP® via FreelanceTaxation.com. To be sure you qualify for any of these expenses you should check with your tax professional first.
- Book, magazines, reference material
- Office supplies
- Cabs, subways, buses
- Office rent
- Gas and electric
- Memberships (professional organizations)
- Messengers, private mail carriers, postage
- Business insurance
- Tax preparation
- Business meals and entertainment
- Mortgage interest/taxes
- Legal and professional fees
Other Tax Deductions
The below list is for fashion entrepreneurs who may have their own small business. This list is in addition to the above. Again, This list was curated by Susan Lee EA, CFP® via FreelanceTaxation.com. You may have other deductions and not all of these will apply to you. To be sure you qualify for any of these expenses you should check with your tax professional first.
- Business gifts
- Business insurance
- Copying, printing
- Agents commissions (if included in income)
- Editorial fees
- Cultural events/ museum entrance fees
- Film & processing
- Hanging fees, entry fees, framing
- Film developing/processing
- Film supplies
- Studio rent
- Legal fees
No Rendering of Advice The information contained within this article is provided for informational purposes only, and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional tax planner or financial planner. Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional tax and/or financial planner.
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Fashion Freelance Business Series:
Top Tax Deductions For Fashion Freelancers