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February 26, 2020

Want A Bigger Tax Return? Try This.

Lili

If you’re an independent worker, doing this one thing throughout the year can save you big when April 15 rolls around.

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The best thing about being an independent worker? You’re on your own – freedom to work the way you want when you want. The worst thing about being an independent worker, especially come tax time? You’re on your own – no one else will help you keep track of all those nitty-gritty details that can not only save you money but also save you from an audit. In fact, as a freelancer, you actually get to write off more expenses than a regular employee, like commuting costs or home office space. But let’s be honest. Tallying and cataloging receipts isn’t the most titillating of tasks, in fact, for most of us it’s downright tedious. But over the course of 365 days, those small expenses add up and each one represents money that gets to stay in your pocket when Uncle Sam makes his annual rounds.

Lili makes this previously excruciating task easy. Every time you use your Lili Visa Debit Card, you’ll have the chance to quickly tag the purchase as a business expense in the Lili app. You can even attach a picture of the receipt – no more piles of crumpled paper littering your desk or kitchen counter. You can get an overview of your business spending at any time in the insights section of the app. Plus, automated monthly and annual reports make it easy to not only maximize your tax deduction, but also keep an eye on your business’ cash flow.

So, what are you waiting for? Here are just some of the things that you can deduct as an independent worker

  • Advertising
  • Business insurance
  • Vehicle expenses (as long as the vehicle is used for your business, you can pro-rate the cost of your personal vehicle though)
  • Commissions and fees
  • Depreciation (If you have business assets, like a car or computer, that get worn down or lose value over the course of the year, you can deduct that loss in value.)
  • Home office expenses (If part of your home is used to run your business, you can deduct some of the expenses of maintaining it including things like mortgage interest)
  • Legal and professional services (including the accountant who does your taxes)
  • Office expenses (If you have a dedicated office space for your business)
  • Rent or lease payments (for office space or business-related equipment)
  • Repairs and maintenance
  • Supplies
  • Taxes and licenses
  • Travel, meals and entertainment
  • Utilities
  • And there’s more. Check out the official list here
Lili mobile banking

Written by

Lili

Banking Designed for Freelancers

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