When you are self employed, you have a lot of freedom to run your business how you would like. However, with that freedom comes responsibility as well. You have tax liabilities that you need to be thinking about. There are many mistakes that those that are self employed make that turn taxes into a massive headache. However, if you are aware of these common mistakes, it could help you avoid them as you file your taxes. Propel Your Accounting is here to talk about some of the most common mistakes that those that are self employed make when filing their taxes.
Tips to Avoid Common Mistakes When Filing Taxes as Someone Self Employed
If you can streamline filing your taxes as someone that is self employed, you are going to be much happier. Here are some tips to help you avoid some common mistakes that those that are self employed make when filing taxes.
– Not Setting Aside Tax Money: It is always a good idea to set aside some of your earnings to help you pay any taxes debts that you might have when you file. When you don’t do this, it can put financial stress on you. This will take some self discipline, but you will be happy you did it when taxes roll around.
– Forgetting Bookkeeping: Getting behind on your bookkeeping is another mistake that you do not want to make. It is important for all of your financial documents to be accurate. This can give you a clear picture of your financial health as a business. It can also help you avoid mistakes when it comes time to file your taxes.
– Not Taking Advantage of Write Offs & Credits: As someone who is self employed, you can take advantage of write offs and credits that others can’t. You can write off specific expenses for your business such as mileage, home office deduction, travel expenses and more. You need to do your homework to determine what you qualify for so you aren’t leaving money on the table at tax season.
– Incorrect Personal Information: When you are filing your taxes, it is important that you have all of your personal information right on every form that you fill out. Things like your social security number, banking information, address and date of birth need to be accurate or you will end up with a headache later. Double and triple check your forms to make sure the info is correct.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are self employed, the best way to avoid any mistakes when filing your taxes is to hire a professional to help you. At Propel Your Accounting, we will handle everything from your bookkeeping to filing taxes to help you focus on building your business. We know how valuable your time is, and we will do whatever we need to to keep your tax liability as low as possible. Call us today!
