When my husband prepared to do our taxes this year we were in for a surprise. It wasn’t going to be like previous years where we could expect a nice return and put that aside for a family vacation. No, it was honestly poor planning and somewhat ignorance that has led us to owe the IRS.
This is because when I first began working from home, I started off making little money. I didn’t think much about putting money aside because I honestly didn’t anticipate my writing career to really take off. But it did and we failed to plan for the fact that at the end of the year I would have to pay my taxes.
So we began to try and scrape together receipts for all of the items that I had purchased which could be used as a tax deduction for my home business. There was my laptop I bought in the beginning of 2010, the printer we purchased a few months later and then the odds and ends of supplies throughout the year.
Believe me, I am going into 2011 with a lot more knowledge and that includes thinking of all the tax deductions I can get in working from home.
Did you know that you can deduct your home office space? However there are certain requirements. For instance, the space must be used on a regular basis and it must be used exclusively for your home business. In other words, your “office” can’t also be used as the family room.
Any supplies that you purchase that are related to your home business can also be tax deductible. I am thinking of smaller items like paper, ink, pens and notebooks. However over the course of a year those can really add up. You might also be able to use your internet service as a tax deduction.
Now I am no tax expert, obviously…so I do advise you to check with a professional but it’s something worth investigating.
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