Tax Tips Self-Employed
Tax Tips Self Employed. Are you a contractor for a company. Most of the time you are based on a commission paid. So if you do not close a deal, you will not get paid.
Working for your self is considered self-employed. Realtors, business consultants or any job that is paid based on performance is to think an as a contractor.
This blog is going to explain a few Tax Tips that self-employed should use when running your business.
In the end, it will save you money when you file your tax return. It also avoids any audit that could happen.
These are the tips you need to start using threw out the year. Do not wait until January and begin to scramble to put your finances in order.
Here are a few essential tips that’ll make the tax-filing process easier on you.
Keep accurate records of your income.
Tax Tips Self Employed will save you time and money
When you are a contractor income could come from different sources.
Painters could be an excellent example of this. They need to keep track of all the income from all the completed projects.
Do not wait to January and start putting this together.
Any profession that is paid when services are executed could be considered a contractor.
Tracking income now will avoid you waiting for 1099 that could be issued in January. Doing this now will prevent you having to wait for any 1099s that will be sent to you in January.
IRS Rules say that it any income collected.
Go out and buy a little book and put any income that you receive.
Using a Google Sheets is a straightforward way to keep track of your income if you are a tec person.
You will never worry about looking for what you made since it is a cloud-based system.
Tax Tips Self Employed Detailed records of your expenses.
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Keeping track of your expenses is a significant Tax Tips for self-employed.
Small business owners and contractors must keep track of your expenses.
The most critical reason is that you need to know what you are spending and cash flow.
Now you will know what your expenses in your business. Knowing your costs will ensure that you will not overspend on a project.
Buying 10 cases of paper when you still have six more is an example of this.
When keeping records, you see that the extra ten is not needed and will decrease your cash flow.
Keeping your records is as comfortable as getting a book and writing down your expenses every day.
Using programs like Quickbooks or Google Sheets is the Tax Tips Self Employed to keep better records.
Do you feel that you have no time in the day to do bookkeeping?
When you have no time to keep track of your finance it is not the time and pay for an accountant.
Look for what you can deduct in your business then click here for our other blog posts that will explain it to you.
Do not get caught short
If you have a 9 to 5 job, then your employer will give you a W2 form. They will take out the taxes for you so you should not get hit when filing your tax return.
Self-employed contracts do not have this benefit. Since you work for your self, no money is taken out of your check.
It will hurt you when tax time comes.
There is a solution to this, so you do not have to pay one big chunk to the IRS. Start making quarterly payment.
We are going to explain how much you need to send in 4 times a year.
Take what income you deposited or made that quarter. Subtract from your expenses from that period which will give your gross profit.
Finale step is to take your gross profit and multiply by 25 percent, and that will give you the number to send it.
If you are having issues to complete the estimated payment, then go to an accountant to assist you.
This Tax Tips Self Employed is the one that could save you the most money.
It will lower how much you will have to pay at the end of the year and avoid any penalty or interest that the IRS could charge you.
Corey & Associates Accounting is who is publishing this blog. Since 1985 we have assisted clients. Our office asks the questions that.
Will make sure you will receive the best accounting service. Free consultation The office is located at 1800 W 68 St Suite 118, Hialeah, Florida 33014.
Phone number 305-823-9228 and email is firstname.lastname@example.org.
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