Tax tips and guidance built for small business owners and the self-employed — deductions, filings, and the stuff that actually applies to you.
Taxpayer asks: I know you have probably gotten these questions hundreds of times, but sorry I need to ask again for my own benefit. First off, I have a little business on the web for which I am self employed and have no employees. This business has been around for a few years however I…
Don’t forget that many corporate tax returns are due on tomorrow, March 15. If you need an extension, use form 7004, available on the IRS web site.
Taxpayer asks: I made $400 from my freelance work. Why didn’t I receive a form W-2? Does this mean that I don’t have to report the income? Taxgirl says: You don’t receive a form W-2 if you’re classified as an independent contractor (more on that in future posts). You’ll receive a form 1099 from the…
Looking for ways to reduce your overall tax burden for the current year? If you’re a business owner with a calendar tax year, consider paying bills now before the new year. This includes the electric bill, phone bill, rent, health insurance and employee bonuses. Don’t forget about office supplies and small equipment that you might…
Taxpayer asks: I read your advice about deductions for business expenses but I don’t use a home office or some of the other things you mentioned. I do, however, use a car for much of my work. Can I deduct that? Taxgirl says: If you use your car exclusively in your business, you can deduct car expenses. You…
The IRS has (finally) announced a formula for determining the refund for businesses and tax-exempt organizations to estimate their federal telephone excise tax refunds. As noted before, the prospect of searching through years and years of telephone records was not particularly appealing for business owners in exchange for a small refund. To request a refund,…
Taxpayer asks: My question is about how to file taxes for my work. Since I’m writing a TV show blog, can I deduct my cable bills? How about my internet? Taxgirl says: Ahh, deductions, the most mysterious of tax form entries. What’s deductible? What’s not? A lot of what can be deducted is very fact-specific,…
The Tax Foundation, a nonpartisan tax research group based in Washington, D.C., recently released its State Business Tax Climate Index which ranks how “business friendly” the 50 state tax systems are. Not surprisingly, the results showed that from a tax perspective, it’s generally more expensive to do business in parts of the northeast and less…