Potter & LaMarca LLP

If you are a freelancer, this post is for you!

If you earned money in the gig economy—driving for a delivery app, renting out a parking space or doing doggie daycare at home, for example—you must report your income and pay taxes on it.

Depending on whether you've worked as an employee or a contractor, you may need to file Schedule C: Profit or Loss from Business. The good news: If you are considered self-employed, you may be able to deduct some car or home office expenses. The bad news: Business taxes can be a bit more complicated.

Don't Miss Out on a 2021 Charity Deduction

Taxpayers who take the standard deduction instead of itemizing normally can't claim a deduction for charity donations. For the 2021 tax year, however, you can claim up to $300 in donations ($600 for married couples filing jointly), even if you don't itemize. Donations must be made to a qualifying charity and the deduction applies only to cash donations and non-reimbursable expenses related to volunteering.

For 2021 only, you can also claim a deduction of up to 100% of your adjusted gross income if you made a qualifying donation of that size.

Here are some tax loopholes that cost the Government the most in terms of missed revenue:

✅ Employer contributions to healthcare
✅Reduced Cap Gains rates
✅Child & Dependent Credits
✅Deprecation

Taxpayers who take the standard deduction instead of itemizing normally can't claim a deduction for charity donations. For the 2021 tax year, however, you can claim up to $300 in donations ($600 for married couples filing jointly), even if you don't itemize. Donations must be made to a qualifying charity and the deduction applies only to cash donations and non-reimbursable expenses related to volunteering.

For 2021 only, you can also claim a deduction of up to 100% of your adjusted gross income if you made a qualifying donation of that size.

Don't forget to claim your Child Tax Credits.

Parents may be eligible for child tax credits of $3,000 to $3,600 per child for the 2021 tax year. If you qualify, you may already have received half of your available credits as advance child tax credit payments between July and December. You can claim the remaining half of your credits on your 2021 taxes using Schedule 8812.

Make sure to double-check for accuracy. If your numbers don't match up with IRS data, the agency will flag your return. You can check your numbers using IRS Letter 6419, which details how much taxpayers have received in advance child tax credit payments. If you can't find your IRS letter, use your tax transcript to verify your economic impact payment amounts.