Tax Tips for the Self-Employed

Being self-employed is not just being able to be your own boss. It is also about being able to put more money in your pocket at Tax Time. And wouldn't you rather pay yourself than Uncle Sam?

Self-employment allows you full command of your tax situation and, with the right knowledge, you can have greater control over the amount of taxes you pay.

If you are not presently self-employed, these tips will make you want to start looking for a job - one where you're your own boss.

If you can file papers in a filing cabinet, then you are half way to one of the most important steps in self-employment. Keeping your records. Receipts, ledgers, any and all documents related to your business need to be filed where they can be found to support tax deductions and credits.

Do you have children? Just because you work from home, or for yourself, doesn't mean you don't need childcare while you are working. If your children are in childcare, take advantage of the credit allowed for childcare costs.

But your children can not only save you money, you can help them earn money. Why not let them be involved in your business with you. Pay them a fair wage, then deduct their wages, bonuses and even fringe bonuses on your taxes. Good, huh?

Did you know that you can help pay for your electric bill with a business in your home? Figure out the space you use for your business and deduct the portion of your household expenses that space costs you: utilities; mortgage or rent; repairs; etc.

You can even carry forward unused expenses to the next year. Again, here's where accurate records pay off. This tip can help you reduce your income (and taxes against it including self-employment tax.)

Do you use your car for business? If your office is in your home, chances are you do. Do you pick up office supplies, make bank deposits or meet clients out? Any driving you do that is tied to your business can be used as a tax deduction.

The IRS keeps a close watch on self-employment income. That means you should know how to do it right. It can put money in your pocket.

Debbie the TAXpert has 25+ years helping people "Save Money on Taxes!" Articles like this are available through "The TAXpert Tips Online". It's a good way to stay abreast of changes in Tax Law, for personal, business, or corporate taxes.

Article Source: http://www.thecontentcorner.com

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