Tax return: what can you deduct?

Freelance authors who work as freelancers do not need a business license for their work. All that is required is a notification of the commencement of an author's activity at Tax office. From there you can get all the information about the tax as well as the necessary tax number for the tax return.

What taxes does a freelance writer actually have to pay?

There are freelance authors and journalists to whom the tax office charges trade tax and there are those to whom clients pay the fee after deducting wage tax. Operational expenses can be deducted from the tax. In some cases, certain limit amounts have to be taken into account.

• Under certain circumstances, freelance journalists and authors can be viewed as commercially active entrepreneurs when certain income limits are exceeded, and they are then also subject to trade tax. Freelance authors should organize their bookkeeping in such a way that they clearly separate any business income from freelance income.
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• In the worst case, the tax office will consider all income to be commercial and levy taxes. Income tax is then deducted from the authors' fee if the employer is of the opinion that the executors are not active as independent entrepreneurs.
• Anyone who as an author can dispose freely and is also free in their decision whether they want to accept orders can feel like a free author and demand their full fee. As a small business owner, you may not have to pay sales tax. The turnover limit is 17,500 euros, in the following year 50,000 euros must not be exceeded.


Dropping off taxi rides - you should keep that in mind

Travel expenses incurred in connection with the exercise of the profession, employees, ...

• A tax return must of course be submitted. If a tax liability is high, the tax office requires advance income tax payments.

Deduct business expenses as part of the tax return

• A notable issue when deducting tax is depreciation. If certain work equipment (computer, company vehicle) is purchased with a cost of more than 400 euros, it must be written off over several years. In the current tax year, such purchases are not fully deductible as business expenses.
• Freelancers can find information about the depreciation period in the so-called depreciation table (depreciation for wear table). It can be viewed at any tax office and also online.
• Example: A notebook was purchased for 900 euros net. the costs of the acquisition are spread over five years. In the year of purchase and in the next four years, operating expenses of 180 euros each arise.
• In the case of the study, you can deduct the costs for the power connection and office furniture as well as renovation costs, among other things.
• Anyone who drives their private car for business reasons should keep a logbook in order to be able to deduct the costs from the tax.

When freelance writers are in their billsvalue added tax identify, a tax liability arises immediately. Then not only an annual tax return, but also an advance return every three months.