Many people in this economic climate are heading toward being their own boss, taking temporary jobs as they come.
We encourage you to watch out for specific income-reporting forms. Most likely, that will be 1099-MISC or 1099-K. However, if certain transactions are not included in these forms, you must still report income. We can help you out with this. It is really important to be accurate and honest with the IRS or else you might find yourself facing the costly consequences.
The 20% Qualified Business Income Deduction is something you should familiarize yourself with. You could have 20% of your earnings become tax savings because of the deduction. The best part is that this is available along with the other general business expenses that are deductible, such as travel and supplies.
The new tax law allows you to increase the amount deducted for qualified business equipment purchases. This can drastically change what is owed to the IRS. Even more savings can come if you purchased a new car this year, with the intention of using it for business purposes.
It would help to know everyone’s individual situations in order to give you more tax tips but these are general ones to keep in mind. REMINDER: Taxes are due April 15. Do not wait, file now.