Work At Home

Self Employment Tax Deductions

Here a few self employment tax deductions that you may be able to use for your home based business.

Possible Write-Offs/Credits for Home Based Business Owners & Telecommuters

It’s no secret that every penny counts in this world, but that’s never been truer than if you own your own business or telecommute. There are an abundance of possible tax write offs and credits for your business. Listed below are just a few. Always remember to check with the IRS before taking any deduction or credit.

1. Licenses & Permits

2. Business use of Home: You may be able to write off a portion of your home if it is used EXCLUSIVELY for business. See the IRS website for more information about this. IRS Publication 587: Business Use of Home

3. Meals & Entertainment: Only 50% of your business related meals and entertainment can be written off as an expense, so don’t overdue it thinking Uncle Sam will let you have all your lunches or parties paid for.

4. Office Supplies

5. Software/Hardware

6. Some Education Expenses

7. Mileage: If your trip is anyway business related you can claim mileage. Keep a small notebook in your car and every time you take a trip that’s business related…write down the date, place you went & how it relates to business and your mileage.

8. Subscription/Membership Fees

9. Professional Expenses: Accountants, Lawyers, Resumes

10. Some utilities: Ex. Telephone if dedicated business line

11. Business Cards and Advertising Materials

This is only a small list. Many more can be found by checking with your accountant or contacting the IRS for more information. No matter which expenses you choose to write off or which credits you choose to take remember to keep very detailed records of your home office activities.

Arika Lewis helps work at home individuals make sense of income tax topics. Visit www.TelecommutingTaxes.com for more information to help take the confusion out of preparing your income taxes.

Do You Need To Hire a Tax Professional?

Here are the reasons why you would hire a tax professional:

* If you are not fully familiar with how to prepare taxes.

* If you do not understand the tax code in your state.

* If you have to itemize your deductions.

* If you do not want to deal with the IRS one on one.

* If you own a business.

* If you don’t understand the questions on the tax form.

* If you have stocks, bonds or other mutual funds.

* If you’re retired and are unsure of your tax status.

* If you’ve researched online, but are more confused by the answers.

The following information is just an overview. Please consult a tax professional for any tax questions you may have.