With all the benefits that can come out of running a home Internet business, the last thing you want to do is get taxed over doing your yearly taxes.
Yes, as the saying so accurately says, the only certainties in life are death and taxes.
With that in mind, are you ready to do your taxes this year or will it be a free-for-all once again, you racing against the clock to uncover all your paperwork and meet the April 15 deadline?
For too many home business owners, the latter is all too common. And if you get to the point of making a late payment, it can add up to a financial burden, something you certainly want to try and avoid when self-employed.
So, how do you avoid these last-minute efforts to meet the requirements and hopefully get a nice little refund in return?
Know Your Eligibility and Deductions
Along with determining if you are eligible or not for this form, the most important thing when it comes to running a home business and your taxes is knowing what you can and can’t declare as a legitimate small business deduction.
All too often, home business owners leave out this deduction or that deduction, thereby lessening their refund or increasing what they in turn owe the IRS.
For starters, do you know how the 1040 EZ Instructions work and whether or not you benefit from filing this form?
First, this form is the shortest and most understandable of all the options that taxpayers have. That said you must me the eligibility rules in order to go this route.
Among the requirements put forth by the IRS:
• You must be under age 65;
• You are in fact eligible to file either as single or married filing jointly;
• Your taxable income is below $100K;
• You do not earn greater than $1,500 of interest;
• You have not obtained advanced earned income credit payments during the calendar year;
Another key item to note with the 1040EZ form is that the main tax break you will find yourself eligible for will be the income tax credit (EITC), which is the credit for those low-income taxpayers.
Remember, if you have a number of home business deductions you want to go in your favor, look to another form.
Finally, another important facet of the 1040EZ form is you have the option of doing it by hand the old-fashioned way or e-filing.
Remember that doing it the latter way can speed up any potential return as opposed to waiting on the regular mail to deliver it.
While not all home business owners will be quick to claim various deductions, many others will.
Educate yourself on what the 1040EZ form offers and whether or not it is the right call for you when it comes to getting a refund and the time spent putting the information together.
Photo credit: Image courtesy of Stuart Miles at FreeDigitalPhotos.net
About the Author: Dave Thomas writes for a variety of websites on topics such as marketing and small business.