Self Employed Federal Tax Deduction Tips
If you're self-employed, you're busy trying to meet payroll, manage an office, make sales, and account for the business you do as it occurs. So in the few moments you have to recall that you're taxes will be coming due again before you know it, what are the best ways to be sure you can get the most of the self employment tax deductions you're entitled to?
The tax year is over, so there is no point now thinking about what expenditures you should make before the year end or what income you might think of deferring until next year - you're already here.
Instead, now is the time to think about the situation and opportunity created last year that applies to filing your business taxes this year. Below are some helpful tips on maximizing the tax deductions you get as a self employed business owner.
First, organization is your best friend. This cannot be said enough. I have filed my own taxes for nearly 30 years, and I can't tell you how much I've lost in self employment tax deductions because I didn't have all my records in order. You don't necessarily need a receipt for every transaction - in fact, you may drive yourself crazy trying to organize all of them. What you do need are good statements, spreadsheets and other reports that detail every expenditure you've made.
Second, consider all of the valuable categories of tax deductions that are unique to the self-employed - these include special retirement accounts (that can still be funded up to April 15th), health insurance or HSA deductions, your home office, vehicle expenses of various types, and depreciation of assets you own. All of these are unique from other individual tax filers, and you should evaluate each category of income tax deductions available to you and try to be sure you are getting everything you can deduct.
Finally, use the resources that will help you make sure to capitalize on the self employed federal tax deductions that are yours to take. TurboTax is the most widely used and best available in the market today. Along with having everything you need to file your income tax return, TurboTax prompts you as you go to evaluate whether there are deduction opportunities you may be missing. Just like everything else in your business, having the right tools for filing your tax return will help you make sure you get the job done right!
Discover the Self Employment Tax Help that is available for you.