Tax Write-Offs for Independent Contractors

As we ring in the new year, a lot of us are also getting our business finances in order for tax time. Just like the new year, it comes every year…

So, if you’re preparing taxes for the first time or this will be the first year you pay taxes on your business… I wanted to prepare a list of things you should be making sure you write off on your Virtual Assistant business.

Note: We highly recommend using an accountant that is familiar with online businesses and LLC’s. Most should be, but just make sure they understand what you do for a living before handing over your taxes to them. A good accountant will look for things you might not already turn in but don’t rely on them to remind you of what you should be writing off!

Let’s start with the basics…

Your Home Office:

Phone Bill

Internet Bill

Any physical purchases for your office: 

Office chair

New Desk

Notebooks

Pens

Printer/Ink/Paper

Other supplies 

Do you create content for your business? Did you buy a ring light this year? Write it off!

Educational Expenses:

If you purchased our All-In Coaching Program in 2021, you could write it off on your taxes 

Any other training you purchase

Physical events related to your business

Startup Costs:

Setting up your LLC 

Registering your website domain

Travel expenses:

Gas

Meals

Coffee

Accommodations

Flights

Event tickets

I know, you’re thinking wait…I am a VA so I can work from home, why would I travel? Some do! Some will work at co-working spaces, some will travel to work in person with their clients or they will travel to events their clients attend, speak at or just for educational purposes…

General Business Expenses:

Any paid tools you use

Client gifts

Bank fees (what do you bill with? If you pay a fee to receive the money from paid invoices, you should be writing those fees off)

Subcontractors (if you have them)

Health Insurance

Business Insurance

Legal or Tax Advice 

There are more but this is a great start for knowing what you should be tracking! And the easiest way to track these expenses is to use a bookkeeping tool (like Quickbooks) and most importantly…

Separate your business money from your personal money. All of your business income should be going into a business bank account. This means you will use that bank account to pay yourself out and pay for any and all of the expenses you have for your business. If you aren’t doing this, things can get super messy.

If you have more questions about taxes, take advantage of our partner Denai Wolfe’s Facebook groups for business owners: https://www.facebook.com/groups/theprofitfactor

Denai is our go-to for any and all tax questions inside of our All-In Coaching Program!