Any tax saving tips for freelance work?

[Poundkey]

Thank you all for the advice. It's been very helpful.
This has been an interesting discussion.

 

[Animorph]

This was really helpful to me. I just started an individual qualified 401k/Roth 401k at E*Trade after reading through this thread. I can dump most of my self emplyment income into the Roth version and some of it into the non-Roth. And I can make regular Roth IRA contributions in addition to the Roth 401k. Just what I was looking for.

Kind of complicated to wade through all the tax requirements, applications, and getting an employer identification number. But it should be worth it for the extra Roth funds.

 

[target2019]

I do my son's taxes and I have a question about free-lance income and taxes. My son is employed full time. He's trying his hand at free-lance photography on the side. Last year he took pictures for a company (not the company he works for) and received a 1099-Misc. for the $1,000 he billed them. My question is, since the amount was inserted in box 7, which I assume tells IRS he is self-employed, am I asking for trouble if I deduct expenses such as the camera, tripod, mileage, and computer he used? My thoughts are to depreciate the camera and computer and take full deduction on the tripod.
Any advice will be greatly appreciated.

I do my own Schedule C, and have done a few for son, and in-laws.

If you receive a 1099, it is not unusual to have legitimate expenses. If the tripod is used 25% or 50% or 100% for business, write it down. If he will continue to receive 1099 income, take the depreciation over time, instead of writing off $1500 for equipment against $1000 income. He probably has auto expenses too. If using these legitimate expenses gets the profit margin to 50%, it would not surprise me, or the IRS.