Tax Tips for the Self-Employed | Taxes

By Debbie-TheTAXpert
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Being self-employed comes with a whole host of tax-related advantages and savings. In fact, being self-employed is considered by many to be the best tax strategy of our time.

But if you want to keep Uncle Sam from reaching too far into your wallet, you have to know the right moves. And that is what it's all about. Knowing your stuff!

Following are some tips for making the most of your self-employed status:

Record keeping is the sure way to put your mind at ease when it's your business. Receipts, ledgers, documentation; these are the building blocks to saving money on your taxes. This makes it easier when it comes time to pay your taxes. And in most cases, you will surprise yourself with how much they save you as well.

What about childcare? Think that just because you work for yourself or from your home you can't deduct for childcare? Not so. Childcare credit is just as available for self-employed and in-home business operators as for 9-5 workers. Use it when necessary and take advantage of the savings.

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?

How can I let my house pay for my business? Well, at least let your household bills pay for your business. You just figure out how much space you use in your house for your business, figure the proportion that is of your total house, then use that same proportion to deduct part of your utilities, mortgage or rent, property taxes, 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.)

Remember that little trip to make the bank deposit? If you're self-employed, that trip is a tax deduction. Your car is a business tool when you are self-employed. In other words, it's a money maker, to help you pay less taxes.

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.

About the Author

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.

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