Shoutout to the library's business section for a wild tax fact

I was looking up some tax stuff for my freelance work at the local library last Tuesday. In a book about small business taxes, I read that over 40% of freelancers get audited at least once in their first five years. That number really surprised me, I thought it would be much lower. It made me double-check all my receipts and mileage logs from last year. Has anyone else run into a stat that made you change how you keep your records?

3 comments

3 Comments

the_robin7h ago

My buddy Jake got hit with a huge bill because he wrote off his whole home office. The IRS said his "studio" was just his bedroom with a laptop. He scans every receipt now.

colegarcia6h ago

That stat is scary but it tracks. After reading something similar, I started taking pictures of my receipts right at the register with an app. It links them to my mileage tracker automatically. @the_robin's friend Jake is a perfect example of why you need proof. My rule now is if I can't prove it with a photo or a log, I don't write it off. It takes two extra seconds and saves so much stress later.

abbyhall4h ago

My dentist keeps a mileage log for his truck now. Says it's just part of running anything these days.