June 26th, 2011
Laughing at Uncle Sam — Funny Taxes for Freelancers
By Paula Pant
Okay, tax season is over, but I just found a gem — a tongue-in-cheek tax form for freelancers which includes such perks as a Twitter allowance and a working-in-pajamas deduction.
“Deduct 100 percent of the change stuck in your couch. Deduct 200 percent if you found the couch on the street.”
And don’t forget to claim the “That/Which Deduction”:
“Deduct $1 for every grammatical error in a sign or poster that you pointed out to someone else.”
As usual, I seem to be the last person at the party — this tax form was published more than a year ago. (Deduct $1 for knowing not to say “over” a year ago.)
If you’ve been living under a rock like I have, and you have a hankering to waste three minutes, check it out.
Want to waste wisely invest more time? Check out this post on the biggest tax mistake freelancers (actually) make.
Or for a broad overview of tax tips, try this helpful link or this FAQ.
August 23rd, 2011 at 7:45 am
Hi Paula,
It’s an intriguing tip, but I don’t think we can actually pay ourselves a salary as freelancers, and I don’t think we can legally borrow from ourselves. Has anybody checked this out?
Thanks,
Michael Fitzgerald
August 24th, 2011 at 3:34 pm
@Michael – You can pay yourself a salary or lend money to the company as long as your freelance business is organized as an LLC or S-Corporation. (You’re effectively no different than any LLC or S-Corp, you simply are a business with just one employee). This is a common tactic among freelancers who want a “salary” to increase their odds of qualifying for a mortgage.