AC Management and Tax Tips
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Issue # November 2006

November 24 2006

 

 

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Editor 'S Note - Peter Tran:     This month edition our firm features article which brings you even more to huge deductions, The 10 Tax Tips for the Self-Employed.  Happy Holiday and Great Tax Save!

 

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Important Dates:

January 31 2006    Federal and State Employment Tax Due (Forms 941 & DE-6)

                            W-2, Sales Tax

February 28 2006  Form 1099Misc Income Due To Independent Contractors

April 15 2006        Income Tax Due Sole Proprietorships & Partnerships

April 31 2006        Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

July 31 2006          Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

October 31 2006    Federal and State Employment Tax Due (Forms 941 & DE-6)

                            Sales Tax

 

CONTENTS

_Publisher's Article:  *****      Taking Advantage of Tax Deductions                           

_Market's New Inventions

_Special Contests & Announcements

_Member' Free Website Tools

_Classifield Ads

 

 

Feature Article:

 

10 Tax Tips for the Self-Employed

Technology and the ease of telecommunication have prompted
more consultants, coaches, contractors and freelancers to take
business matters into their own hands. Self-employment is no
longer a means of making some extra money but a full-time
career, and many such full-timers are punching their own time
clocks and making excellent incomes.

The self-employed have unique tax concerns. Below are ten
helpful tax tips to help lessen Uncle Sam's tax bite:

1. Keep very good records: Unlike a large company in which
 someone is hired to maintain records of all income and expenses,
it is up to you to keep very good records, save all receipts and be
able to support your deductions.

2. Office space: Whether you have a separate office facility or are
using a portion of your basement or a converted den, you can deduct
the percentage of your home used exclusively for business purposes.
Take this percentage off of your mortgage or rent payments as well
as your utilities. If you have a phone exclusively used for business,
deduct those phone bills.


Con' t


 

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3. Don’t forget business expenses: Keep receipts and good records
of business travel and other expenses including office supplies, postage
and shipping costs, dues, subscriptions, and anything else business-related,
including computer software for your business and upgrades to your system.

4. Deduct child care costs: There are allowable deductions for daycare,
nanny care, babysitting and any other type of childcare provided while
you are working. Take the deductions allowable.

5. Set up a retirement plan: You should consider setting up a self employed
qualified retirement plan (i.e. SEP IRA) not only for tax purposes but for the
same of saving money for your retirement years. If you wish to start with
more than $2,000, you can opt for a Keogh plan, which allows you to put
away more into tax-deferred savings for your retirement.

6. Employ family members: You can deduct medical expenses for your entire
family by employing them legitimately.


Con't

 

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7. Defer income if necessary: Being self-employed, you can alter your billing
slightly to defer income if you see yourself heading into a higher tax bracket.

8. Get money back from FICA: Being self-employed, you pay both the
employer and employee portions of Social Security tax. You can, however,
deduct half of these payments on your 1040 form.

9. Increase expenses if necessary: Just as you can elect to defer income, if
you see that your income is high, you can make many more year-end business
purchases to add some tax deductions before December 31st.

10. Get the right help: Look for tax help from someone who is familiar with
self- employment, since your needs will differ from those of a company.

 Con't

Source:  www.allbusiness.com
Related Topics: Tax deductions

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Special Contests & Announcements
Current Contest:   members who refer 10 "New Subscribers"  will get FREE: ***** *****BlogGuide .  Simply refer to
www.managementtaxtipsezine.com to subscribe.
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