Tax Preparation Checklist for WAHMs
Isn’t it amazing that as much as we’re aware of the fact that tax season rolls around at the same time, every year, still we tend to put off preparing for Uncle Sam until the last minute? If one of your New Year’s Resolutions is to actually get a leg up on your tax filing by making a tax preparation checklist, then you’ve certainly come to the right place. Below, we have seven things that you definitely should jot down if you are a Work-At-Home-Mom who wants to be better prepared come April 15:
Mileage. If you’ve traveled for business purposes, make sure that you have the dates that you used your car for business trips, the places that you went, the total miles driven (both to and from) along with the nature of the trip.
Office expenses. Anything that you purchased for the sake of your home business, those are things that you can list as a deduction. These would include office supplies, electronic equipment and yes, even office furniture.
Travel expenses. If you had to fly somewhere for a business meeting, the cost of the flight, hotel and rental car are all things that can be deducted. Don’t forget that you can also deduct the meals that you had while eating out. However, when it comes to those, you can’t deduct the total amount; just half.
Education. Whatever classes, seminars, videos, books or magazine subscriptions that you purchased for the sake of educating yourself or any employees that you might have about your company, that is also something that you can subtract while filing your taxes.
Liability insurance. As a mom, you probably already know that when it comes to your taxes, you are eligible for a child tax credit. What you may not know is that the liability insurance policy that you took out in order to protect your business is also something that is completely tax deductible.
Expenses paid to non-employees. If you paid someone an amount that is over $600 and they are not an official employee of yours, you must make sure that you file a 1099-Misc form with the IRS. This will protect you from being held liable for the taxes on that income (in other words, it makes it the responsibility of the non-employee rather than you).
Tax preparation fees. A lot of people who run a small business or work from home will opt for hiring an accountant or going with an accountant firm when it comes to filing their taxes. This can be a really smart move because they are experts when it comes to finding deductions that you might not notice without their assistance. Aside from the fact that they can help in getting you a bit of a tax break, if you do decide to hire a tax preparer, you can also deduct the amount that you paid for them to do your taxes for you. So, not only are you getting the peace of mind that your taxes will be done in a thorough way, but you can also smile about the fact that you could write off what they charged you for doing it.
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