Standard Deduction vs Itemizing for Self-Employed? | What All Freelancers Have to Know

Keeper is delightfully smart tax filing software that’s especially useful for people with 1099 contracting & freelance income. Connect your bank to automatically uncover tax breaks & personalize.

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A lot of self-employed people are confused about the standard deduction. Did you know that you can take it AND still deduct business expenses?

This video dives into the facts every single freelancer should know about the standard deduction. This is the $12,000 tax break that every single American tax filer gets.

When it comes to taxes, we tend to talk a lot about taking the standard deduction vs itemizing. But that applies for personal deductions, like charitable donations, property taxes, and medical expenses.

If you have less than $12,000’s worth of personal deductions, then there’s no reason to itemize those — the standard deduction will save you more on your taxes. Itemized business deductions, though, are entirely separate. If you’re a freelancer, gig worker, or independent contractor, you can write off those expenses ON TOP OF the standard deduction.

Why is this so important for freelancers and 1099 contractors to know? Because of how self-employment tax works. If someone who works a W-2 job makes less than $12,000 a year, then the standard deduction makes it so they don’t have to pay income tax on that at all. Your income from self-employment, though, will still be taxed even if you make less than $12,000. The standard deduction won’t cover you!

That’s why it’s crucial for all self-employed people to keep track of their business expenses — even if they only freelance part-time. You’re going to be taxed on that income regardless, so you should make sure you’re taking every tax write-off you’re legally entitled to.

TIMESTAMPS

0:00 - Intro
1:29 - What is the standard deduction?
2:18 - Understanding personal vs. business deductions
4:09 - Tracking your 1099 expenses

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[theanadevine]

My mind is blown by this video having like 12 and a half views. THIS IS SO GOOD AND ESSENTIAL AND GORGEOUSLY DONE!!!! Maybe I’m finally ahead of the curve and identified the next YouTube tax superstar before the rest of the internet.

[monicabaros]

I just came across your videos and mad I didn’t find you sooner! Your videos are awesome! So informative, short, personable, relatable, and to the point. Thank you so much! I’m now a subscriber and look forward to future content. Wishing you blessings in abundance!!

[monicabaros]

And I too and blown away that you don’t have more likes and followers! Praying for a well deserved increase and support your way. Your content is ON POINT! B

[nicolerodriguez]

😇🎉 Thank you! This was exactly what I was looking for. I loved how you explained everything. God bless you!

[McWonder]

The information is dope, but the Delivery??? THIS is how you teach. This is how you do it. All love

[jnsangel]

I am new to this 1099 thing and this was so informative. MIND BLOWN!! I am horrible with taxes also - this made things so much easier. thankyou

[jds]

Now that's some powerful information. I pray it's correct. I have an LLC for asset protection and was researching this topic and your video came up. Liked and subscribed!

[amandahalabi]

Oh my gosh, Tyra, I think I love you. Thank you SO MUCH for this video, I spent hours trying to google to find this exact piece of info (whether I could deduct business expenses on top of the $12K standard deduction) and found nothing helpful. This video just alleviated so much stress for me. THANK YOU!!!

Also, quick question: I am a full 1099. Does that mean I do not benefit in any way from the $12k personal deduction?
For example, if my income was $50, 00 and all 1099, does this mean that I can ONLY deduct business expenses, and the personal standard deduction of $12k does not apply to me?
OR does it mean that I can take my $50k 1099 income, subtract $12k as the standard business expense, then subtract all of my business expenses, and then only pay taxes on whatever is remaining after that?

[consumerdebtchitchat]

Beautiful woman you are a genius!!!! Thank you. New sub

[TewoniaA]

Great content, very simplified. I have watched over a dozed videos on YouTube and yours's has been a live saver!

[joshuafontenot]

🎉 thanks so many other vids but this was the first one dealing with 1099 work income may GOD bless you and this channel

[Jolosauru]

Your channel is the best resource I’ve found on taxes. Thank you 🙏🏼

[Olha-im]

Thanks for the video. But I still have a question, if I do not have a main job and only receive income as self-employed, can I write off the standard deduction?

[jasmineg]

Very informative video and love your energy!

[markusmatthew]

Great video, I was filing and saw the 12000 deduction wasn’t applied when using freefillable. This video verified my exact thought, business revenue rather than W2 income, “personal”. Thank you.

[tiffanydavis]

Ok my husband and I are both only 1099s, I love deductions so we don’t owe as much to the IRS but then we in turn don’t show we make as much as we actually did? How do I balance this?

[romeomax]

Wow, this is great information, thanks lots :)

[someguyfromtheinternet]

Saw an ad on facebook. I honestly feel like this might be very good for truckers.

[pashaniane]

Can you get itemized and standard deduction if i only do a 1099 job?

[Tiffany.B.]

Hi! I'm new to taxes, so I'm self teaching 😞.... question, So if you're 100% 1099 (no W2) can you still claim standard deduction? (I'm assuming NO, but I don't know because I didn't know the information you just spoke about until now, lol) thanks