For those of us living in the US, taxes are a part of our every day life. Being a Independent Contractor, it is important to know what deductions we can take at Tax Time.
What deductions can we take if we work out of our homes? This is something I have spent a lot of time on because I am passionate about my deductions. Every year at tax time, I am vigilant to pull every deduction I can find.
How do I do this? I start at the beginning of the year. I save every receipt that pertains to my business. Yes, the reciepts add up. But keeping them is extrememly important!! The key is we do not want to have to pay the government anything!!!
What receipts do I keep? As a rule, anything related to running your business can be deducted. Whether it is going out to eat with a client or running to Office Max for extra pens.
1.If you join a pay-forum/job site, this is tax detuctible.
2. Advertising--this is definately tax deductible!
3. in home office? You can add this room in your deductions. You will need to know the total square footage of your home, the square footage of your home office.
4. Car? You need to keep a log of all miles used while traveling with business. I have to go across tolls often, so this is a huge deduction for me when on a business trip.
5. Phone bills--all of us have to talk to clients.. Thankfully, we can deduct it as well
6. Returned checks and fees--Although this is unfortunate, clients do give bad checks to us from time to time.. and we do incur fees. Thankfully, we can deduct this as well!
7. Postage--All postage or shipping can be claimed as well.
8. Computers--have you purchased a new computer? you can also claim depreciation 3 years after computer has been bought!
9. Donate to Goodwill or other charities--As a business, I try to donate on a regular basis. It's good for business and deductions. And you feel good!!
All to say, there are many deductions we can take.. The key is knowing them, and utilizing them! Hope this helps you!! If you think of more, please add them!!
Tax Deductions
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