Today, more than ever before people are choosing to work from home or be self-employed. As the economy continues to change and more jobs are shipped overseas, more people than ever before are becoming innovative and are finding ways to earn a living on their own.
That said it is important to get the tax aspects of being self-employed right from the very beginning. Here are a few hidden tax strategies that self-employed individuals can use to lower their tax bill on annual basis.
Working With A Tax Lawyer In Atlanta
For example, anything that is business related should always be considered as potentially tax-deductible. If you are a website or Internet programmer you can clearly deduct anything related to computer costs and expenses such as buying a laptop or purchasing software.
Even subscriptions to trade magazines can be considered tax-deductible. However, working with a tax lawyer in Atlanta is the best way to know for sure what is deductible and what is not deductible. The IRS has exacting guidelines with regard to what can be deducted by a home business.
Atlanta Tax Help Is Just A Call Away
Another excellent strategy that can help improve the bottom line for home-based businesses or those who are self-employed is to consider naming your children as employees. Paying family members to do work or officially putting them on the payroll can help to bring down the tax burden for a home based business.
It is also possible to deduct health insurance costs as a way to lower taxes. Those who are self-employed and are not considered a corporate entity will typically carry some type of health insurance. Anyone eligible can deduct the entire cost of health insurance in most cases from personal taxes.
An Atlanta Tax Attorney Can Help Guide You
In addition, self-employed individuals may be able to write off bad debt. For example, after chasing a client or customer who has failed to pay bill for a given period of time, it is best to simply write off the debt.
Your Atlanta tax attorney can help you through the complexities of ensuring that bad debt is written off in the right way. While no business wishes to write off debt and lose money, there is always an upside in that taxes may be effectively lowered because of clients or customers who refuse to pay.
Tax Preparation Expenses
Finally, having a professional such as an Atlanta tax help expert do your taxes makes certain that everything is completed in a correct and accurate way.
As a bonus, it is possible to write off tax preparation expenses in order to further reduce your tax bill. The IRS allows for tax preparation expenses to be written off as well as accounting services and other types professional legal services.
Consult with your Atlanta tax expert to get all the details. Contact The Gartzman Law Firm, P.C. an Atlanta, Georgia tax lawyer today to learn more.