Tax Deductibles for Internet Marketers

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Just like any group of freelancers or workers who run their own businesses, one of the advantages of being an internet marketer is that there are quite a number of expenses and deductions that you can claim when it comes to filling in your tax return. There are of course a number of items specific to your particular business that you will be able to claim and these should be discussed with your accountant. But there are certain areas that every one who works freelance and online will equally be able to claim as a legitimate part of their business expense and some of the more common areas will be outlined here in this article.

The first and most important thing to note is that no matter what it is you are going to claim for you will need to keep records of each and every transaction and keep hold of all your receipts. If it is for a piece of online software or a hosting account, print it off and file it for later. This will save you a massive effort and printing session when it comes time to do your taxes!

Secondly, no matter if your entire business is online, the first place to look for expenses is the physical space of your home or office.  If you work from home, add up what percentage of your home is dedicated to conducting your business. You will then be able to claim this back as a percentage of your rental or mortgage payments. In addition, any expense related to the running of that premises for the purposes of business will also be deductible This includes the cost of utilities such as electricity and phone, as well as anything to do with the maintenance of the property for business purposes. Your computer is essential business equipment so this should be deducted too. This also applies to the furniture surrounding that computer, so keep receipts for the desk, chair, monitors and printers and anything else you use in the office.

Once you have taken care of the physical space of your business, you should look at deductions for the virtual space. Obviously, just like electricity and phone, you can claim for your broadband service. Your website (or for most internet marketers your multiple websites) are also rented space so you can claim for their domain name purchase, their hosting accounts and any maintenance or site add-on’s you might get from your hosting provider. Any support calls will also be deductible. After that, think about any plugins or scripts, software or ebooks you might have purchased for the business – most of them will be deductible. Most importantly, think about any outsourcing you might have done, from backlinks to paid articles, design work to a virtual assistant. All of these expenses can be reclaimed.

Lastly, think about your advertising. Did you spend any money on adwords or Facebook ads, or even put an advert in a trade publication or website? All of these can be fully reclaimed.

Remember, there’s no point in not claiming. Through use of a good accountant and a bit of discipline each time you make a payment through the year, you could find that when it comes time to pay your taxes, you have significantly reduced your arrears.

Alex Simmonds is a journalist and blogger. He currently writes a blog about the contracting sector covering everything from contractor mortgages to payday loans.

Reducing your IRS tax debt – A step towards fiscal freedom

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Knowing as well as learning the ways of reducing your IRS tax debts is the only possible solution to the nerve-wracking problem. According to resent studies, it has been seen that the huge number of IRS tax defaults is due to lack of awareness than the negligence on the part of the actual tax-payers. Most people in the US do not have any inkling ways to seek IRS tax debt relief and this ignorance builds up their fearfulness that leads them into incurring more and more debt. If you too have missed your payments on your taxes and you’re not aware of the ways in which you can pay them off, here’s help for you. Have a look at the ways in which you can tackle your IRS tax debts.

Guaranteed installment agreement: If you want to make sure that you’re soon free of IRS tax debts, you can negotiate a guaranteed installment agreement with the IRS. However, you can only seek help of this option if you have dues that range above $10,000 or less. You also need to meet some more criteria like all your tax returns must be filed and the monthly installments will pay off your balance within 36 months. You also need to agree that you will pay your tax debts regularly in the near future. The biggest benefit that you can reap off the guaranteed installment agreement, you will not require filing federal tax lien. Tax liens can easily hurt your credit score, if reported.

Streamlined installment agreements: You can talk to the IRS about your financial hardship and then you may negotiate a streamlined installment agreement if the balance that you owe amounts to $25,000 or less. You need to agree that you will repay the balance within a span of 60 months. The minimum balance that the IRS will accept is the total amount owed (including the penalties and fees) divided by fifty. All your tax returns must be filed and you must agree to file your tax debts on time.

Offer-in-compromise: If you think that your present monthly income is not enough to suffice the huge amount of tax debt that you own, you can go for offer-in-compromise option. If you file an offer-in-compromise, you can offer to pay an amount that is lesser than what you actually owe your creditors. As you file your request with the IRS, they will check whether or not you are actually liable to pay off your tax debt. By opting for this debt repayment method, you can save your dollars and use it in paying off your other obligations.

Nothing can be worse than getting drowned in an ocean of tax debt. If you’re up to your eyeballs in IRS tax debt and you are looking for tax debt relief options, you can follow the points mentioned above. Pay off your taxes and lead a free of all debt obligations.

Jenney Roberts is a contributory writer of Debt Consolidation Care. She is a financial writer and has specialization in financial problems and its solutions. She holds her expertise in the Finance industry and has made significant contributions on debt consolidation, savings, planning, frugality, debt settlement etc.

5 Tax Write-offs for Freelancers

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2010 is officially over, and you know what that means–it’s almost time to prepare your taxes (cue groaning.) Tax preparation can be a daunting task, especially if you plan to do it yourself.  And for freelancers or self-employed individuals, there may be even more confusion.  Luckily, there is a lot of information available online today to help us all through the process.  Terms likes 1099s, Schedule SE, Schedule C, Schedule C-EZ, will be words you soon become familiar with, if you aren’t already.

Below are 5 great tax write-off opportunities for freelancers and the self-employed.  It’s important to be aware … Read more at 2009 Taxes

Tax Act

2010 is officially over, and you know what that means–it’s almost time to prepare your taxes (cue groaning.) Tax preparation can be a daunting task, especially if you plan to do it yourself.  And for freelancers or self-employed individuals, there may be even more confusion.  Luckily, there is a lot of information available online today to help us all through the process.  Terms likes 1099s, Schedule SE, Schedule C, Schedule C-EZ, will be words you soon become familiar with, if you aren’t already.

Below are 5 great tax write-off opportunities for freelancers and the self-employed.  It’s important to be aware of what tax write-off options are available because, as freelancers and self-employed individuals, you’re paying much more taxes than someone employed by an employer.  Freelancers and the self-employed pay not only the employee share of Social Security and Medicare taxes, but also the employer’s share.

1.    Job Hunting Expenses and PayPal Fees: Freelancers with long-term projects are fortunate in not having to continuously search for new gigs, however, for most freelancers, we’re always on the hunt for more projects to keep the pay-flow going.  This may mean signing up with job boards where there may be a fee to join or a fee to bid on projects.  These are expenses that may be written off.  PayPal fees for accepting payment from clients for work completed may also be written off.  Just make sure you keep receipts and print off all online documentation pertaining to the expenses and fees.

2.   Health Insurance Expenses: If you are buying your own health insurance (meaning you are not part of a health plan offered by your employer or your spouse’s employer), then this is an area that is deductible. Health insurance premiums are costly so this is an area where you can see the biggest deductible from your freelance work income.

3.    Home Expenses: This particularly applies to individuals who work directly out of their home.  A portion of your utilities, cellphone (if used for business), insurance, and mortgage interest may be deducted.  The amount deductible is based on a percentage calculated from how large your office space is within your home.  You’ll need IRS Form 8829.

4.    Research and Technology Expenses: If you are working in a particular industry and have expenses related to research for that industry, such as attendance cost for a conference, a book purchase, a magazine subscription, or something else related, gather your receipts as these items that qualify for tax write-off. Technology equipment, such as the cost of a computer, a printer, and other equipment you use for work also qualify.  And don’t forget about Web site hosting fee and design and maintenance fees, these are also expenses you may write off.

5.    Travel and Transportation Expenses: Travel associated with doing business may be written-off.  Whether the expense is for airfare, hotel, car service, gas, tolls, mass transit, or car payment and insurance cost, these are all expenses you should have a tally of to determine the amount that can be written off.  Business-related travel includes any transportation required to attend a business meeting, to purchase office supplies, to attend an event, and other related-business purposes.  Business travel does not include going to and from work.

Want to know more?  Check out these 50 blogs about taxes!

Wendy Lau is a New York City-based guest blogger for Pounding the Pavement and a writer on the subject of becoming a nail technician for the Guide to Career Education.

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Tax Audit Lawyer

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Whether you have a small business or a large one, a key element that keeps you in the clear is a tax audit lawyer. Tax audits can be called for a number of reasons and neglect in record keeping one of the reasons thing could turn out bad if you have to respond to one and are not prepared. If you are called to pay penalties, extra taxes and interest for missing records and having no back up documentation, it could be pretty costly. A tax audit attorney can also help when it comes to understanding the requirements from the IRS and the tax boards. Tax mistakes can put a dent in your finances. Listed below are some important reasons why having a tax attorney is an asset.

Time – If you need to know the minute details of the obligations you are required to meet regarding taxes, the tax attorney is trained to do just that. Rather than misusing your valuable time trying to learn all of the information, get direction from your attorney. Since you are not trained in this area, you may overlook some really important details.

Time – Part 2 – On the job training is really important in some jobs, but as a business owner, you do not want to be trying to learn about your tax obligations and details when they are due. There could be costly oversight. Hiring a tax attorney at the beginning of your operation is one of the best steps you can take to prevent financial disaster. Inventory and other details are part of the priorities when starting a business. A tax attorney should be a specific part of those details.

Tax Year – Whether you have a traditional tax year or establish one custom to your business needs, a tax audit attorney will help to set that up.

Business Income – What does that mean for you? Identifying what applies as business income can alleviate unnecessary expenses. Determining whether your specific property, goods, services, or particular income may quantify as business income is part of the tax attorney’s job.

State Taxes – Can you say confusion? Sometimes determining what your state obligations are can be downright frustrating. What does it matter if you operate inside your state and should you pay taxes if you operate outside of the state you reside in? These state tax questions and many others can be individually addressed by your tax attorney.

Employee Taxes – When own a business and work for yourself, even by yourself, your tax obligations do not disappear. Paying taxes by quarter may be necessary to meet your tax obligations. This is another specific area that can be decoded for you by your tax attorney. What is your particular role and to what extent are you obligated as a sole proprietor?

Business Forms – Filing certain forms may be a requirement for your business so that you are in check with any necessary agency. Your tax attorney will have the ability to determine what forms are required from your business, when they need to be filed, and how often.

Business Deductions – You mean I can not deduct haircuts! Deductions get some people in trouble. Knowing exactly what deductions are available to you is really important. There may be qualifications for certain deductions. You may also not want to miss out on any deductions that are given for your specific business.

Changes, Changes, and More Changes – Because the tax changes come frequently, and every year new regulations or requirements are added to the already major list of them, your tax attorney is abreast of what the new changes are and how many apply to you.

Ignorance is Not Bliss – Feigning no knowledge of any particular tax law or requirement will not relinquish your responsibility to comply and certainly may not remove the circumstances of non-compliance. A tax attorney is trained for the purpose of making sure that people are aware of what concerns them and that they protect their assets. Your business is an asset, a legacy, a living. Why would you not protect it to keep it going strong?