Tax Tips for Houston’s Self Employed
Being your own boss and owning your own business in the Houston area has lots of advantages—you can set your own hours, work in your pajamas if you want and of course, have significant personal control over how successful your business will become. However, one potentially complicated issue for self-employed individuals comes at tax time. This causes stress for many, but it is important to realize that there are many tax credits, deductions and IRS programs for self-employed workers that are actually incredibly beneficial.
Here are some tips for Houston’s self employed that you can use as you prepare to file this year.
Unlike employees of a large corporation, you have not had taxes withheld from your monthly paycheck. So, if this is your first time filing as a self-employed individual, there may be a bit of a sting—and you may end up having to pay more taxes than you had in mind. But keep in mind, you have not been paying the IRS income taxes throughout the year. It is wise to make plans for this moving forward and set aside a certain amount of your income each month so tax time is less stressful.
There are several key deductions for self-employed individuals that can really reduce the amount of taxes you have to pay each year. For example, if you are really using a room in your house as your home office, then you are entitled to take a deduction for this. You should keep in mind that this home office should be used exclusively for this purpose and the IRS is looking closely for individuals trying to bend this rule. You can also take deductions for travel, office supplies and health insurance costs. You should always keep receipts and records in case the IRS asks for back up documentation. Taken together, these deductions can really add up.
The IRS looks very closely at small business income because it can be easy for these businesses to report less income than is actually brought in each year, especially if most transactions are done in cash. You could find yourself looking at an audit if you give the IRS any reason to suspect that your income is not accurate.
Deduct the Cost of Help
You may decide that getting some tax support is wise to be sure that your return is accurate and correct, that you are taking all legitimate deductions and credits. You can deduct the tax preparation expenses, so get the help that you need proactively and rest easy knowing your return is ready to go and not raising unnecessary red flags with the IRS.
Success Tax Relief: Ready to Help Self Employed Individuals in the Houston Area
Success Tax Relief understands that filing taxes if you are self employed can be complicated and stressful. We have more than 30 years helping taxpayers in the Houston area and can be sure that your return is accurate and low risk. We can suggest legitimate tax deductions and make sure that you have all of the necessary back-up paperwork in the unlikely event you are audited. We also provide audit support and can help if you find yourself owing the IRS more than you expect.
Contact us today for a free consultation with one of our experienced tax professionals. You will rest easier knowing that someone with knowledge and experience is working for you!