| Innovative technology and the convenience that | | | | the IRS, for all kinds of daycare provided during |
| the Internet and teleconferencing brings have led | | | | business hours. Don't overlook these important |
| more coaches, contractors, professional | | | | deductions as they can save you a lot of money. |
| consultants, and freelance workers to go into | | | | 5. Retirement plan creation: Develop a |
| business for themselves. Being self employed isn't | | | | self-employed retirement plan (that is, a SEP IRA) |
| a means of simply generating additional income to | | | | not only for tax purposes, but also for the |
| supplement a job - it has become a full-time | | | | purpose of creating a corpus that would serve |
| endeavor. A lot of full-time workers are setting | | | | your retirement. One can start with as low as |
| their own hours while making great incomes. | | | | $100, however if one has $2000 or more, one |
| However, self-employed people do have distinct | | | | should try the Keogh plan option, which allows one |
| tax concerns. Read on for 10 helpful tax tips to | | | | to invest his money in savings for the purposes |
| reduce the bite Uncle Sam takes out of your | | | | of retirement and also get the deferred tax |
| income: | | | | option. |
| 1. Maintain detailed records: This is one of the | | | | 6. Hire your family members: You may subtract |
| most important tax tips because, without the big | | | | medical expenses for the whole family if you hire |
| company resources to hire someone to track | | | | them legitimately. |
| income and expense records, it is your | | | | 7. If needed, defer income: As your own boss, |
| responsibility to maintain thorough records and | | | | you are allowed to slightly alter your billing so that |
| keep each receipt to support all of your tax | | | | you can defer income should you find you are in |
| deductions. | | | | an elevated tax bracket. |
| 2. Deduct your professional space: If you use a | | | | 8. Receive a refund from your FICA: You employ |
| separate office space or designate a portion of a | | | | yourself, so you are required to submit payment |
| spare room in your home or your basement, you | | | | for both the employee and the employer portions |
| are allowed to deduct the percentage of the part | | | | of Social Security taxes. You are permitted, |
| of your home you use exclusively for professional | | | | however, to deduct one half of these payments |
| purposes. Claim a tax deduction for this | | | | when you file a 1040 form. |
| percentage from your rent or mortgage | | | | 9. Before the end of the tax year on December |
| payments, utilities, etc. If you keep a cell phone or | | | | 31st you may need to increase your business |
| land line exclusively for business purposes, deduct | | | | expenses to offset your tax deductions. Buy a |
| the amount from any bills. | | | | few business items that you know you will need |
| 3. Don't ignore the cost of doing business. Valid | | | | for the months to come. This is a good option if |
| expenses include professional travel, office | | | | you find your income has advanced you to the |
| supplies, shipping fees, professional memberships, | | | | next tax bracket. This is one of ways to lower |
| subscriptions, and computing equipment. Take | | | | your tax burden for the year. |
| care to maintain accurate records of these costs | | | | 10. Get Tax Help: Seek tax help from a person |
| including relevant receipts. | | | | who is very well-versed on self employment |
| 4. Childcare Deductions: Deductions are allowed, by | | | | issues to get the correct needs. |