Tips for Your Copy Tax Return when Self Employed

Self Employed Copy Tax Returns

If you are self employed then it is likely that you will have a lot of deductions on your copy tax return. Deductions help you to lower the amount of taxes that you have to pay each year. Unfortunately, keeping up with your deductions and filing them on your income taxes can be a real pain. In most cases you will need the receipts and invoices that prove you spent the amount stated. This is especially important during an audit. Keeping accurate records is an important part of having a small business and keeping a copy tax return is important for your records. Here are some great tips that will help you get the most for your tax deductions.

Home Offices

One of the best things that you can claim as a deduction on your copy tax return is your home office. Although your office is contained in your home, you will not be able to deduct the entire home. You can however, deduct the space that is used for work. You will need to calculate the amount of space that is used for work in your home. Restrooms are essential so be sure to include that. This will allow you to figure the proper percentage of your mortgage, home insurance, utility bills and property tax that can be used as a deduction. The larger the area that is used for work, the more you will be able to deduct.

Insurance

Another big tax return deduction that you can take advantage of is any insurance premiums that you have to pay. If you are unable to qualify for your spouse’s insurance plan and have to purchase insurance independently you can deduct this expense. The great thing is that if your insurance provides coverage for the whole family, then you will be able to deduct that amount as well. Insurance is a must these days and the IRS realizes that. This deduction is a special concession that is made for self employed individuals to file on their copy tax return.

Entertainment Expenses

You can actually deduct the cost of meals and entertainment from your small business tax return if you are careful. This can be a bit tricky. In order to use these things as a deduction, then it is important to make sure you handle or discuss business during the activity or before it occurs. You will need to keep an extensive record about who the meeting was with and what was discussed beforehand. This will help you if you are audited for any reason. A prime way to get audited is by having too many meal and entertainment expenses wrote off on your tax return. Although this is tricky, it is useful if you need to entertain your clients from time to time and will help you when filing your copy tax return.

Other Expenses

If you are self employed there are some other expenses that you may consider using as a deduction. If you have internet access and it is used for work then you will be able to deduct this from your copy tax return. You can also deduct the portion of your phone bill that is used for business. If you have a dedicated line then the whole phone bill may be deducted. Mileage may also count when you travel for business related purposes. As with meals, it is important to make sure you keep a careful record of the miles you have traveled for audit purposes. You can also deduct credit card interest when used for business purposes.

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Posted by on Sep 14 2011. Filed under Copy Past Tax Return. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

1 Comment for “Tips for Your Copy Tax Return when Self Employed”

  1. […] have to mail a special form. The form is called form 4506 and with it you can usually request a copy tax return for the last 6 years. When requesting older tax returns, you will have to include a fee for each […]

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