self employment and taxes - what do you do?

Posted on: 3 March 2015

With tax season approaching, many people are wondering how they can save the most money on their taxes and maximize their refund. If you are not careful you can easily overpay on your taxes. This is why it is important that you understand what things you can do to make sure that you utilizing your deductions, credits, and saving money. Here are some tips for getting the most out of your taxes.

1. Save Your Receipts

All year you should be putting aside receipts that you use for business expenses and other expenses. For instance, any time you gas up with the company car, meals you eat with clients, supplies you buy for your office and any other related expenses should be recorded. In addition, you can deduct things like moving and relocation expenses, home office supplies, education expenses, etc.

If you don't keep good track of all of your purchases you will have a hard time proving them when it comes to tax season. If you don't have proof of all of your expenses you cannot declare them in your taxes. Thus, keep things organized and you will be ready when it is time to file your taxes.

2. Use a Certified Tax Preparer

Another great thing you can do to get the most out of your taxes is to use a tax preparer. Professionals such as Hy Appelbaum CPA understand the tax laws and how they change each year. There are differences in credits and deductions every year and if you don't have extensive knowledge about these laws you could lose a lot of money. This is for two reasons.

1. You might miss out on a credit or deduction that you could have taken. There are many different perks that you can take advantage of if you know they exist. For instance, there are education credits that you can take if you are in college or paying for someone who is in college.
2. Second, you could make a costly mistake. By taking a deduction or credit that you don't deserve could put you in a lot of trouble. You could be fined and have to pay a great deal of money to the IRS. For this reason, you need someone to help you avoid mistakes so that you don't get fined.

By understanding how to get the most out of your taxes you can be sure to get the maximum refund on your taxes this year.