Filing your taxes can be a hand wringing, nerve wracking experience, especially when you have a new home business and are unfamiliar with tax codes. While there are many resources available to help you learn more about taxes, including which deductions you should claim and which ones send up a red flag, you may be better off hiring a tax professional at least when you are starting out. You do not want to make mistakes early on that could cause you to lose your business before you really get it going.
To learn more about taxes, visit the IRS and websites like Home Business Tax Savings. It offers a free newsletter and lots of other free information on deductions, tax breaks, and other issues unique to home business owners. It also offers tax forms, links to IRS publications that might be of interest, and paid services that are meant to help you keep more of your money. They offer Tax Saving Tools, Business Success Tools, Help from Experts, and links to many other resources.
There are also books available to help you keep more of your money. Home Business Tax Deductions: Keep What You Earn, by Stephen Fishman is one of them. It is described as “comprehensive yet easy to read,” and offers information on write offs that you may not even have considered. It also tells you how to avoid stirring up trouble with the IRS and explains how different businesses have different tax structures. Look for a paperback copy on Amazon.
It is important to understand taxes thoroughly before attempting to file on your own, so get as much information as possible. While a small, simply structured business may require nothing more than filling in the “other income” line on a 1040, many require much more complex accounting and documentation.