Strategies That Will Help You Own Tax Season As An Independent Contractor
There are several reasons why some tax seasons are worse than the past ones. Tax payers being left confused about the several changes that were made by the Tax Cuts and Jobs Act to the tax code is one of the reasons. A large number of taxpayers who usually get and rely on tax refunds did not receive them as they virtually disappeared; this is the second reason. self-employed People have found it much more confusion. What may make you have concerns is how you will get through this tax season as an independent contractor. Check out www.thepaystubs.com to get started.
During tax season, the big thing that you should know is the difference between independent contractors and employees. What brings about the difference is the arrangement that you have with the clients or companies that you are working with. Under the surface, some differences may be noted between employees and independent contractors even though they may be paid the same for the same work Employees do not have control over their time, and they are required to be in the office from nine to five, unlike independent contractors.
More flexibility and freedom is what independent contractors have than employees, but they have to pay their own taxes and health insurance. The same amount of taxes are paid by independent contractors regardless of the money they have made. One of the strategies is taking all of your deductions possible into account. When you are independent, it will be possible for you to take many more deductions; this is another difference between employees and independent contractors. Employees are not able to write off mileage. Some of the deductions that you can make as an independent contractor are home office deductions and expenses related to your business.
If you want to own tax season as an independent contractor; you should also keep impeccable records. A small percentage of taxpayers are audited by the relevant authorities, but you should be prepared in case you are audited, or more information is wanted. Having evidence of your income and expenses is necessary in case you are asked any questions. Both bank statements and receipts for everything are needed as proof. You should keep a mileage book and save the documentation and receipts if you plan on writing off transportation costs or car mileage. Find more info at https://www.thepaystubs.com/.
In order for it to be easily tracked and proved, you will want to have a clean record of your income. Another thing that will enable you to own tax season as independent contractor is not being afraid to ask for help. It is challenging to pay taxes as an in dependent contractor because you may have questions on what to deduct or what not to deduct. Instead of assuming anything, you should ask for help.
Read more at http://www.huffpost.com/entry/five-reasons-why-your-accounting_b_5120911?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACahK3gLqGqEdwGhN6FoA8q_0cbXGfe3tYmfA0Usn3XuRQOxaKqfQsAu7nmEdje-0Oabu-ZYtVP6hjinKupXQ5sDd2cL6yKkmhkJZeNTobJtQSzGsuQpLmKQH2zm4PfW2uzp0NsB8mCwrJlE9lUrXsO4BpunHyHI2SaqMvO_QyYO.