| As a self-employed independent contractor, the tax | | | | today more and more self-employed independent |
| clock is ticking and you're in danger of letting serious | | | | contractors have home offices. Just make sure that |
| income tax relief money slip through your fingers. If | | | | you are following the IRS's home office guidelines: If |
| you're not careful, you could also make some common | | | | you have claimed a home office deduction and you |
| self-employed independent contractor income tax | | | | sell your house, you will have to consult with a tax |
| mistakes that will mean you'll owe back taxes on your | | | | attorney for tax help on how best to handle the |
| 2009 income tax return. | | | | recapture depreciation issues unique to your situation. |
| For tax planning as a self-employed freelance | | | | Tax Help Tip for Self-Employed Freelance Workers |
| professional, the most important thing to do is income | | | | #5: Buy a mileage log book and fill it out. If you use |
| and deduction management. As many Americans | | | | your car to go from your home office to the job site, |
| have discovered in this down economy, starting your | | | | that is a travel expense (which is tax deductible), not |
| own business is a good way to cut back on taxes | | | | commuting costs (which aren't tax deductible). Keep a |
| because business expenses are considered legitimate | | | | mileage log book in the car. Before the year is out, |
| tax write-offs. However, you must exercise caution on | | | | consult with a tax attorney to get the tax help to |
| categorizing business expenses in avoid owing back | | | | clarify which travel expenses (and car costs) are |
| taxes and incurring IRS penalties for mis-categorizing | | | | legitimate for your industry and which are sure-fire |
| personal expenses as business expenses. This is a | | | | audit bait. |
| tax crime and is severely punishable. | | | | Tax Help Tip for Self-Employed Freelance Workers |
| For more ways to legitimately maximize deductions | | | | #6: Separate your work and life: If you haven't done |
| while avoiding IRS tax problems, check out Part 1 of | | | | so already, open separate accounts, phone lines etc. |
| this series on Year-End Tax Tips for Independent | | | | Make clear distinctions so the IRS can see what are |
| Contractors and Self-Employed Individuals Who Need | | | | self-employed independent contractor expenses. |
| Income Tax Relief. | | | | Tax Help Tip for Self-Employed Freelance Workers |
| To help you save money on your taxes and get the | | | | #7: Have a yearning for some learning to keep you |
| income tax relief you need, here are 10 important tax | | | | earning: Remember that professional training courses |
| planning strategies to consider: | | | | and seminars in your field are tax deductible. Education |
| Tax Help Tip for Self-Employed Freelance Workers | | | | is an investment but also a nice source of income tax |
| #1: Sweet charity ain't just a musical. When it comes | | | | relief. Pay for it today, even if the course is next year |
| to your charitable giving, to get the maximum income | | | | and you'll get the deduction. |
| tax relief of course you should give as much as you | | | | Tax Help Tip for Self-Employed Freelance Workers |
| can before December 31st, but there might be | | | | #8: Pay the nanny. As a self-employed independent |
| additional ways to meet your charitable goals while | | | | contractor, you can deduct daycare, nanny care, |
| easing your back tax burden. If you donate your | | | | babysitting and any other type of childcare provided |
| services to a charity, you can deduct the market value | | | | while you are working. This creates income tax relief |
| of that contribution from your taxes. Perhaps you can | | | | but it also has hidden dangers. If you have hired a |
| set up a foundation that would receive funds to meet | | | | nanny as an employee, don't forget to pay his/her |
| your charitable goals without showing up on your | | | | Social Security taxes. Forgetting to pay Social Security |
| balance sheet as income. Of course you don't want to | | | | taxes on childcare has gotten a lot of people into IRS |
| be on the hook for tax fraud so a tax attorney can | | | | tax trouble. If this is you, get tax help from a tax |
| give you tax help you set up the charitable giving plan | | | | attorney. |
| that provides you and your business maximum income | | | | Tax Help Tip for Self-Employed Freelance Workers |
| tax relief. | | | | #9: Pay the wife and kids. Your family can produce |
| Tax Help Tip for Self-Employed Freelance Workers | | | | more income tax relief than just the standard |
| #2: Buy stuff. If your self-employed independent | | | | deductions. In addition to paying family members for |
| contractor business needs supplies and big ticket items, | | | | the legitimate work they do, as employees you can |
| buy them before year end so you can get the | | | | also deduct their medical expenses. Paying family |
| deduction early. Sneaky income tax relief tip - if you | | | | members also helps create a team feeling for your |
| buy a big ticket item on December 31st, instead of | | | | business and teaches children the value of work and |
| January 1st, that one day allows you to get a full year's | | | | necessary life/office skills. |
| worth of depreciation. | | | | Tax Help Tip for Self-Employed Freelance Workers |
| Tax Help Tip for Self-Employed Freelance Workers | | | | #10: Get tax money for love. Get married and/or have |
| #3: Don't forget to take (tax) credit where credit is | | | | a kid before December 31st for sure-fire year end tax |
| due. There are lots of income tax relief in the form of | | | | deductions. Who says Uncle Sam doesn't feel the |
| tax credits that you may be eligible for, such as the | | | | love? |
| earned income credit, the child and dependent care tax | | | | While there are certain tax benefits to being a |
| credit and the first-time home buyer credit. | | | | freelance worker – such as tax write-offs for |
| Tax Help Tip for Self-Employed Freelance Workers | | | | business expenses, remember that you must tread |
| #4: Home is where the office is. To get the maximum | | | | carefully during these tricky times so that you do not |
| income tax relief, make sure that all qualified business | | | | find yourself mired in financial turmoil with the IRS. Stay |
| expenses end up on your balance sheet. If you have a | | | | informed and remember that if you do find yourself |
| home office, make sure that everything that goes into | | | | with tax problems, you are entitled to representation |
| that office is accounted for, including telephone, Internet | | | | by a tax attorney or tax resolution specialist when |
| access, supplies, repairs and maintenance, etc. The | | | | dealing with the IRS. |
| home office deduction used to be IRS audit bait, but | | | | |