Applying for an EIN is super simple now, because the IRS allows you to do it online through their site. (Click here to apply for one.) You don’t require one, but it helps mask your social when you’re submitting W-2s to people you freelance for. You’re eligible for deductions no matter what, but the EIN is useful for security purposes. For this year, just claim your business deductions on your personal taxes the way you normally would. (I recommend seeing a tax professional since you aren’t really tax savvy yet, that way you’ll be certain to get every penny you can back.) You sound like you’re on the right track! When it comes to deductions, as a general rule, anything you have to spend money on to make money is deductible, but talk to a tax professional in your area to get more specific guidelines just for you.

I’m so glad I’ve come across your page! Everything has been so helpful!! You’re a saint!
I have a couple questions I hope you don’t mind me asking! Last year, I worked half the year in retail as an employee for a cosmetic line. Then, half way through the year I changed my job, also working in retail for a different cosmetics line, but this time as an independent contractor and working my freelance business as a Makeup Artist. I took a extremely brief course on Legal Aspects of a Small Business and was able to go somewhat in depth into what being an “independent contractor” meant. The class was only a week long and I’m trying to take more classes on it, because I feel like I’ve already forgot some key elements. My question to you is: Where can I apply for an EIN number and all the proper documents needed on my part claiming to be a independent contractor? Correct me if I’m wrong, I should have one being self-employed and filing a 1099, right? This will also gain me access to deductions as well, correct? I don’t imagine I can get that number for last years taxes, but I definitely need one for this year seeing I’ll continue to be with the company. This is my first time working full-time “self-employed” and I’m a bit overwhelmed when it comes to taxes. I’ve already started logging my mileage, tools, and saving at least 20% of each check for taxes, but if you have any other helpful tips on what I can be deducting that would be greatly appreciated! Please, let me know if this is too much to ask, so I can get proper guidance!! Thanks so much!

Megan