Home Business Tax
Savings
(OF COURSE CONSULT AN ACCOUNTANT FOR DETAILS,
we are not a tax adviser.)
I am NOT here to tell you to go get an
offshore bank account so you can hide your income from the Government.
Taxes are necessary and we as Christians NEED
to pay our taxes. However as good stewards of God's Money we also should not
OVERPAY for your taxes either.
Here are a few tips to save money on your taxes but first
listen to this message:
Press
The Play Button For More Info
CHANGE YOUR EXEMPTIONS ON
YOUR W-4.
This is not your dependents but your
exemptions!
If you are getting a BIG tax refund, you may
love getting that check but you are actually giving the Government your
money interest free for a year.
The IRS stated back in 2004 that the Average
tax refund check was almost $2300!!! That is almost $200 per month ($200 X
12 Months) given to the IRS INTEREST FREE!!! If you are getting a tax refund
check of more than $300 you need to consider changing your exemptions. Or
feel free to send me any extra money you may have and I will keep it for you
until next year and NOT pay you any interest.
Change your Exemptions at your job.
Exemptions and Dependents are NOT THE SAME THING! That same person who is
getting a $600 tax refund is earning No interest from the Government.
However they could save $2-3,000 in interest on that same money!! This is
how the middle class person gets AHEAD by USING THEIR MONEY CORRECTLY.
Giving is a great Tax
Write off in the U.S.
* Another great tax write off is
charitable giving. BE A GIVER! For it is better to give than to Receive. Be
a giver all the time. Remember it is a tax deduction (in the U.S.) for
charitable giving. So not only will you help your favorite Church/Charity,
you can have a nice tax deduction.
Having your own Home
Business
Whether you want to sell things on Ebay,
market Pampered Chef stuff, sell a mail order product, or turn your hobby
into a part time business, you can get great Tax deductions working from
home. (There are THOUSANDS OF THINGS TO DO. Check out the Home Business
section of this website)
This could save you Thousands of dollars
each year.
Here are some of the things that you can
deduct for your home business. (OF COURSE CONSULT AN ACCOUNTANT FOR DETAILS.
I am not a tax adviser.)
* Business travel
* Mileage- this can be big!! It is roughly $1 per 3 miles you drive. Just
think of throwing a $1 out of your car window every time you drive 3 miles!
* Medical expenses
* You can pay your kids do some of the work. Instead an allowance pay them
to help you in your business and get the tax deduction Up to $4,000!
* You can deduct the office space for
your home business.
* Phone bill if used for business.
* Internet costs
* If you get a post office box that is
deductible and you can deduct the mileage going back and forth.
I am sure there are 100's of other items
and issues to deduct. I am by no means an expert on Taxes; however, I do
know that I shouldn't overpay for them.
All of these are LEGIT deductions that the IRS allows. DO PAY YOUR TAXES.
JUST DON'T OVERPAY FOR THEM.
Your business doesn't have to even make
money in order to get these deductions. You do have to try to make money
with the business of course but even if your business loses money you can
still use these deductions.
I don't have TurboTax or anything like
that so I am not sure if they include that type of stuff in that software.
However if you want some more help on this issue you can find some good
information at the
"Internet Tax Helper"
The reduction in Taxes you pay from
having a home business can add up to $2,000-$3,000 or MORE each and every year.
That is like an extra $170 in your pocket each an every month just off that
ALONE!
People who run a
small or home-based business now qualify for a greater array of tax
advantages than any other category of taxpayer!
Even the super-rich, with their high-priced tax lawyers, can't get the
tax breaks that YOU can, simply by operating a "side-business" that may
take you only a small amount of time to run.
Congress wants to encourage taxpaying Americans just like YOU to have a
home-based business because it is good for the overall U.S. economy. So,
they passed legislation that allows you HUGE Home tax breaks if you do.
They'll even let you take tax deductions on losses from your home-based
business.
Why allow these Hometax Benefits?
Because Congress is betting that some of you will hit on a winner,
strike it rich, and, thus, pay a LOT in taxes. Of course you won't mind
paying a lot in taxes if you're making profits, right?
You can even qualify for these Home tax deductions retroactively! The
tax deductions and write-offs now available to taxpayers who run a small
or home-based business, also apply to the past 3 tax years.
If you had a home-business in any of the past three years, following
these simple step-by-step instructions, you can easily file an Amended
Tax Return (Form 1040X), and possibly get a Refund Check for THOUSANDS
of DOLLARS – plus interest! See all details by reading
Taxes on Home-Based Businesses
Small businesses must make income tax payments on a set schedule just
like any other business. The two taxes you should be most concerned
about are the quarterly estimated income tax payments and the self
employment taxes.
The federal income tax is a pay–as–you–go tax. This means the tax must
be paid on income as it is received. Tax is generally withheld from your
wages or salary before you receive it, and may also be withheld from
other types of income such as pensions and unemployment compensation if
requested. However, tax is generally not withheld from income such as
alimony, interest, dividends, rental income, self–employment income, and
capital gains. You may be required to pay estimated tax on these types
of income. Estimated tax is the method of paying tax on income not
subject to withholding and on other income from which not enough tax is
withheld. You do not have to make estimated tax payments if your 2003
tax return will show a refund.
Qualifications for Quarterly Estimated Taxes:
You are going to owe more than $1000 in income taxes
At the end of the year your tax bill will be less than either 100% of
your tax bill for the previous year or 90% of the tax you will owe, then
you must make quarterly estimated tax payments. You must make these
payments using Form 1040-ES. This form and your payments must be made on
April 15, June 15, September 15, and January 15. (These estimated tax
payments will include the money you owe for payroll taxes such as
Medicare and Social Security) When you estimate the quarterly tax
payment, what you should do is figure out how much you will probably owe
in income taxes at the end of the year. Then plan on sending in one
quarter of that amount with each tax payment. Using the previous year's
income tax bill is a very good way to estimate the current year's tax
payments. As long as you pay about 90% of your tax bill over the course
of the four quarterly installments, you will not incur the 9% penalty
for failure to comply. But if your adjusted gross income exceeds
$150,000, you will need to pay no less than 105% of the previous year's
tax to avoid the penalty.
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