Are there any free or low cost resources available that have prepared forms or documents for use? Thank you!!!!
Answers
Hello Sonia,
I've had a home-based business for a number of years now. I use Schedule C; do take a look at it to get a feel for what are common deductions. I also have my entire tax return prepared by an Enrolled Agent; it's their business to know the finer points and guide me. A meeting with a local Enrolled Agent (for a fee probably) may well be a good investment on your part to get started properly. But...wait until the tax season is over and they've had a chance to catch a breath or two!
Wish you success,
www.irs.gov Don't forget...you need to be making a net profit...which you can reduce the Federal Income Tax on by taking your legitimate deductions. Taking these home business deductions can be triggers for an audit. What you take MUST BE IN COMPLIANCE with IRS rules...and that requires REAL GOOD RECORDS...I'm retired from the IRS.
Both Turbo Tax and TaxAct (www.taxact.com) will walk you through possible deductions. Both programs actually give you good reference to all items you might be able to write off, I prefer TaxAct since the Federal return is free, and you can go there online to review possible write offs by starting a new return for free. I have had several home based businesses and generally you can write off most expenses related to your starting and running your business. Being self employed you can write off Health care expenses (over 8% of income I believe), vehicle expenses for business, home office, furniture, computers, phones & service, professional journals and expenses. This can all be done on Schedule C if you are not incorporated. Many businesses are not profitable the first couple of years, so don't worry if your business show a loss after expenses while you are getting up and running.
Best Wishes!
Free info is in IRS brochures on line.
Turbotax is great low cost product.
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