Income Tax Deductions

Income Tax Deductions

Because I have so many income tax deductions I can no longer do my taxes on my own. I believe this is for the best, because if I try to do them on my own I know I would end up being faced with an audit. I am not the best at keeping receipts, though I do keep good records. However, I know that the IRS would be more interested in what receipts I could produce rather than what kind of records I kept. They don’t care about how honest I think I am, they want to see proof.

If you have income tax deductions, you must keep records in receipts of everything. Even if you go to a tax professional to get your taxes done, you still have to keep a hold of each and every receipt you ever get. If that receipt is related to an income tax deduction then you must have it if the IRS asks to see it. Most of the time if your taxes are simple enough, and you have gone to someone to prepare your taxes, the IRS will not bother to audit you. However if something seems to be askew in your income tax return or when your income tax deductions, you can bet they may be paying you a visit very soon.

I am not the most organized person in the world so I keep a special book for my income tax deductions. The front part of the book are used to record every single dollar I’d make and they make sure that I know who paid me and what the pay was for. In the back of the book I keep track of every single one of my income tax deductions and have a special folder in my filing cabinet for each and every receipt. Though I try to be very good about this, I know I am missing some things. I bought software for work purposes that cost me $100. I am afraid I have lost that receipt. No matter how dedicated I am to keeping things together, something always ends up getting lost.

I work from home, and my income tax deductions are minimal. However, as long as I am making more of a profit than I am claiming in deductions I should be just fine. I am an honest person, but the IRS knows that many people are not. When it comes to reporting how much money you made, and claiming income tax deductions, make sure you are as truthful as you possibly can be. Even leaving a couple hundred dollars worth of income off of your income tax return can spell big problems for you. There’s nothing funny about income tax evasion, and what will happen to you if you’re caught.

Income tax form

My husband and I recently started our own home based business. This is a huge change for us. My husband has kept his regular job, but I have left my full time employment to try to get the business off the ground. There are so many things to learn. We are in a multi-level market business. I have never sold anything in my life. I have spent twenty-five years as a social worker. I had decided that dealing with people’s mental health issues was zapping my energy, so we made the decision for me to stay home and start a business.

After several weeks of research we decided on a company to be involved with. We were both trained in the marketing techniques and we invested in different products and started retailing as well as sharing the business opportunity with others. My next door neighbor is a retired accounted. She started asking me questions about taxes. With all the other things I was learning I had not thought about what we needed to do about taxes. At my other job I would get my income tax form at the end of the year and would submit the e-z file tax return. My neighbor suggested that I call her son, who is also an accountant to get some tax advice.

Her son was very helpful. He told me which website to go on to learn all about which income tax form to fill out and the time frames I needed to follow. The website is very easy to use and everything that is needed for taxes is right there. The income tax form can be filled out on-line or you can print a copy. There are instructional booklets that can be downloaded to your computer or printed out. There was also a list of seminars that are available to learn what you need to know about taxes in regards to a small business. My friend’s son said that the important thing to remember is to save receipts on everything that has to do with the business so that when it comes time to file taxes you can take as many deductions as possible.

I have followed his advice and have placed every receipt in a file. When the time comes to fill out the income tax form I may have to get additional help, but so far I have been able to get my questions answered through the website.