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Many freelancers nowadays do their own tax returns for their work. However, there are many factors here that can be easily overlooked. Here you can find out what you have to declare for income tax.
Table of Contents
Income tax checklist
List income: Probably the most important information for determining income tax results from the entries. This is only the income that was actually determined from your freelance work in the last year. List the receipts with the related bills.
List expenses: Now collect all the expenses that you were able to record in the past year in relation to your freelance work. Pay attention to a clear separation between private and business expenses to avoid trouble with the tax office. These could include costs for printer paper or the computer.
Getting business expenses right: When calculating income tax, think about internet, phone, and car costs. If you have a real study, you can also include expenses for furnishing it.
Determine the balance sheet: Now look at the amount of your income and expenses. Subtract the latter from your income in order to receive the amount that will later be due for income tax. For the online tax filing with taxfyle this is important.
As a freelance tax advisor waste of money or useful?
Tax advisors know: As a freelancer, you only have limited insight into the world of finance. For example, you can determine your income tax independently for years and overlook the fact that the invoices issued are all incorrect due to a lack of information. These and other little things are not hidden from a tax advisor.
Investing that pays off: Depending on the size of the company you run as a freelancer, you can pay quite a bit of money with a tax advisor. Calculate whether this also applies to you. To do this, compile the working hours that you have to invest in the income tax return and add them up to your hourly wages. Take this value and compare it to the costs that the tax advisor charges.
In principle, you can deduct all health-related costs, including medical bills, from tax. In the tax return, the extraordinary charges are provided for.
Achieve tax optimization of your medical bills
Legislators have placed reasonable burdens before extraordinary burdens. The reasonable and the resulting extraordinary burdens are regulated in Section 33 of the Income Tax Act.
Then medical bills exceed the reasonable burden
The limits of the acceptable loads are determined by two factors. On the one hand, the marital status is decisive, on the other hand, the total amount of all income.
Up to a total of € 15,340 per year in income, single persons without children can deduct medical bills from tax if they exceed five percent of income. In the case of married people, the reasonable limit is exceeded by four percent. Taxpayers with one or two children exceed this limit with two percent of their income, with three or more children the limit of reasonableness is already reached with one percent.
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