Work At Home Tips: Income Tax Organization
Is it really that time of year again? Time goes by so fast, especially if you’ve been relatively busy with your home business within the past year.
There are so many things to remember when preparing your tax returns, as well as knowing exactly what is considered taxable. Let’s take a quick look at what may be taxable in your work at home situation.
Here are just a few that I’ve listed below:
1. Monthly Internet bill. I know this is the number one item on my list since I work at home and I have to use the Internet to make my income.
2. Monthly hosting bill if you own your own domain name. This is another important write off for your business, especially if you own several domains/websites and your hosting bill is considerably high.
3. Monthly phone bill. If you own a business and you use your phone to run your business, then yes, you need to write off your phone bill.
4. Business transportation mileage. If you use your automobile for business, such as home parties, this is another important taxable write off. Fuel prices has went up considerably. You need to keep careful track of all your transportation expenses (including gas receipts), and file anything and everything that you can.
5. Advertising expenses. Some people pay for advertising for promotion purposes and some do not. If you do pay for advertising, then you need to file these expenses on your taxes. Depending on the type of advertising, it may or may not be taxable, but it’s always safe to file all expenses.
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