It’s not everyone’s favorite topic, but one that must be done – and must be done correctly.
However, we all make mistakes or miss a few details when filing our tax returns.
To help you avoid those mistakes – and to help you save as much as $1000 in your tax returns – Barbara Schriehans, tax expert, goes over common errors or things that people usually miss in their tax returns.
📌Pin this blog for later!📌
Click here to watch the full interview.
🌟 File a tax return that shows all of your business income and expenses.
Even if you have a full-time job, and you have a side hustle, you still have to file a tax return that shows all of your business income and expenses. A big one, especially with COVID in 2020, is your home office deductions.
🌟 Expense all of the things inside of your home office to your business.
This includes computers, laptops, iPads, air pods, cell phones, cameras, and other things you use for work. You can even expense your cell phone bill to your business!
🌟 Take what would have been a personal expense and make it a business expense.
For instance, if you need branded photography, and maybe you buy a new outfit, you can expense it to your business. HELLO, cute new top!
🌟 When you’re traveling, find ways to expense it.
If you’re traveling, and scheduling business meetings along the way, you can take that whole trip as a business expense.
🌟 Expense courses and seminars as business development expenses.
If you attend online courses, seminars, or other courses that can help you in your business, you can take that as a business development expense.
🌟 Vehicle deductions.
You can either take miles or the actual expenses. For instance, if you can say that 50% or more of your miles are for business, then you can write off the cost of your car.
🌟 Check your subscriptions.
Check all of your subscriptions – some subscriptions you think are personal may actually be considered a business expense. For instance, if you pay for extra storage on the cloud, you can expense that.
“I work the best in two-hour increments… so, I kind of have a two-hour chunk. And then I take a break, a two-hour chunk, maybe I go for a walk, or I go to the gym.” – Barbara
I know this episode was juicy for me, how it was for you as well. Which business expense do you usually overlook? Let me know!