There are several things about being self employed that are appealing to many. The fact that you are your own boss, can make your own schedule, and have as much time off as you would like, all sounds like a dream come true. While this can be a great way to live, there are some things that are more complicated about being self employed. Your taxes are one of them. Mark Dicus & Company is here to talk about some of the most common mistakes that those who are self employed make when they file their taxes.
Tax Filing Mistakes to Avoid as Someone Who is Self Employed
When you are self employed, there are some mistakes that you will want to avoid when it comes to filing your taxes.
– Not Setting Aside Money for Taxes: It is vital that you set aside money for taxes throughout the year. This can be difficult to do and may require some self control, but you will be much happier if you have the funds necessary to pay taxes when tax season rolls around. This can help you avoid unnecessary surprises.
– Neglecting Bookkeeping: While bookkeeping might seem monotonous, it is an essential part of doing business. You have to keep track of what you are making, inventory you are buying, debts that you are accumulating and more. This is all done through your bookkeeping. Your bookkeeping needs to be accurate so that you avoid bumps in the road at tax time. You should always separate your business financials from your personal finances. It makes tax season far less confusing and chaotic.
– Incorrect Personal Information: Another mistake that is commonly made by those that are self employed is using incorrect personal information on tax forms. There is vital information that must be correct including but not limited to, social security number, address, banking information, and more. Double checking this information to make sure you have it all right will help save you time and hassle down the road.
– Not Utilizing Write Offs & Credits: One of the major benefits of being self employed is the write offers and the tax credits that you might be eligible for. You have business expenses that can be write offs and help to lower your earned income and tax liability. Earned income credit and child and dependent care credits can be helpful too, if you qualify for them. Make sure you are keeping records of all your expenses so that you can take advantage of these savings.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are someone who is self employed, you can turn to Mark Dicus & Company to help ensure you aren’t making any of these mistakes as you file your taxes. We will help you take advantage of any credits and writes offs that you are eligible for to help lower your tax liability. We can also help you with your bookkeeping needs so that you have a clear picture of your financial situation. Call us today!