The need to file old tax returns is relatively common these days. But for taxpayers who are self-employed, the process can be a little trickier. When you are self-employed you are subject to self-employment taxes, so you want to minimize them as much as possible.
Locating a qualified tax practitioner will go a long way in helping you maximize tax deductions. The following are a few overlooked deductions:
Even though you may be a salaried employee, there are certain circumstances which allow for legitimate deductions for a home office. Your professional tax preparer can lend guidance.
If qualified, you can deduct a percent of your mortgage or rent, utilities, home insurance, office supplies, equipment for which you have paid, plus many other items which can add up quickly. This can really help reduce your Adjusted Gross Income and your end-of-the-year taxes could be substantially less!
Well, you have always taken the mileage allowance and do not think you have made any errors. That is not what is meant here. There are other available options that should be compared with the simple mileage solution. It could be you have missed out on thousands of additional dollars in deductions over the past five years.
Meals and entertainment:
Most business people who have had taxes prepared in the last ten years or so know that one of the big changes in deductions is the government’s restrictions on meals and entertainment. This ‘luxury’ deduction was 100% deductible at one time. However, due to some abuses in this particular area, meals and entertainment now have restrictions.
Do you know how to legitimately maximize these deductions? Again, with a little planning and the help from a professional, you could gain a substantial amount toward your deduction.