Managing Freelance Tax

Managing Freelance Tax



Managing Freelance Tax
According to​ business analysts,​ the​ home-based business trend is​ on​ the​ rise and a​ lot of​ people are jumping onto self-employment .​
The news is​ not surprising since there are many advantages in​ being self-employed and owning your own business .​
Aside from the​ fact that you​ can actually call something your own,​ there is​ also the​ sense of​ achievement brought by personal success .​
On the​ practical side,​ you​ get to​ be your own boss,​ which means that you​ decide your hours and how much effort you'll put into a​ project .​
Plus,​ there are certain advantages exclusive to​ dealing with self employed tax,​ sole proprietor tax,​ business tax,​ and other monetary matters.
Managing your taxes is​ easy,​ says Jan Zobel,​ a​ freelance tax specialist .​
Drawing from over 2 decades of​ tax management experience,​ she has the​ following suggestions on​ how to​ manage self employed tax,​ sole proprietor tax,​ business tax,​ and other independent taxes .​
She suggests filing appointment books,​ daily planners,​ or​ calendars with finance materials like taxes and banking records .​
Zobel tips that there is​ money in​ keeping time .​
Your schedule can be used as​ proofs to​ verify and clarify business expenditures like travel mileage,​ phone bills,​ and hotel receipts .​
Presto,​ instant tax deductions .​
She advises to​ log in​ your travel time and miles driven in​ business trips in​ your appointment book .​
Aside from this,​ Zobel also warns to​ take note of​ financial details .​
Often,​ these are the​ causes of​ tax troubles .​
Record those bank account deposits,​ regardless whether they are loans,​ gifts or​ business-related .​
It is​ also helpful if​ you​ note deposit sources .​
Keep these notes in​ a​ checkbook or​ a​ separate file .​
This way,​ you​ can separate business income from loans and gifts which aren't covered by tax .​
The IRS usually assumes undeclared income if​ audits reported an​ income excess even if​ these came as​ gifts .​
Proofs or​ records of​ these gifts prevent tax problems from the​ IRS .​
Zobel asserts that insisting you​ can remember everything related to​ your finances come tax time is​ unrealistic.
Self employed tax,​ sole proprietor tax,​ business tax,​ and independent taxes benefit greatly from separating business accounts from personal accounts .​
Zobel advises to​ keep business money in​ a​ separate account and your own money in​ your own account .​
Be reminded to​ write checks for business purposes from the​ assigned account and vice versa .​
For those who don't want separate accounts,​ Zobel suggests to​ note each check with remarks such as​ business or​ personal each time you​ write one .​
Identifying the​ purpose of​ the​ check won't hurt either such as​ for office furniture .​
This tip minimizes mix-up of​ your personal and business finances .​
Following this tip,​ keeping credit cards for personal and business use separately is​ also preferred .​
She also reminds that interest in​ credit cards for business purposes is​ a​ hundred percent deductible .​
Zobel advises keeping credit card and sales receipts .​
These are especially handy during audits for reference .​
Consulting tax specialists,​ professional tax managers,​ and the​ internet for tax managing tips are also advised.
Lastly,​ whether you​ pay self employed tax,​ sole proprietor tax,​ business tax or​ freelance taxes,​ keep your records clean and straight .​
Remember also to​ settle your taxes on​ time .​
Racing after deadlines can make you​ forget key documents which might cause tax problems.




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