As a small business owner, you know that tax time can be daunting. But the fact is, it doesn’t have to be.
You just want to make sure that you stay on top of your taxes as much as possible.
Because you don’t want to have to pay more taxes than you need to, right?
As a self-employed individual, there are tax strategies that you can use to help save money on your Schedule C taxes.
Some of these strategies are well known, while others may be less familiar.
But all of them can help reduce your taxable income and lower your tax bill.
So if you’re looking for ways to pay less taxes read on to make sure you’re taking advantage of every deduction and credit possible!
10 TAX STRATEGIES AND HOW TO USE THEM
There are many tax strategies available to you that can help reduce your taxable income. Here are 10 specifically geared towards Schedule C Taxpayers.
- Under the Section 105 plan, you can make your health insurance a tax-favored business deduction. Hiring your spouse as an employee allows you to reimburse the employee-spouse for family medical expenses. This turns those reimbursements into deductible business expenses.
- Have children under 18? Employ them. As long as they are of legal age to work in your state, hiring your child is a big tax write off because you shift your taxable income in the higher bracket to a smaller one.
- Employ your spouse without paying him/her a W-2 wage. Instead of paying your spouse W-2 wages, you can reimburse them for medical expenses. This lowers your FICA tax expense and allows you to use medical expenses as a tax deduction.
- Rent your office from your spouse to save self-employment taxes.
- Establish an office in your as your principal office. This allows you to turn personal home expenses into business expenses as well as using your vehicle as a deduction.
- Giving yourself flowers, fruit and books can be used as tax-deductible fringe benefits.
- Create a business trip that includes some personal days. You can treat those personal days as 100% business even if you don’t work on those days.
- Combine your home office and a heavy SUV, crossover or pickup truck and utilize them 50% of the time to grab big tax deductions.
- Use the 7 day tax deduction travel rule to create a business trip that is 87% a personal vacation.
- Having a smartphone or providing smartphones to your employees is a great way to get tax-free fringe benefits.
By implementing one or more of these strategies, you can rest easy knowing you did everything possible to minimize your liability.
I know that the thought of doing your taxes can be stressful, but with my help it doesn’t have to be. I’ll walk you through each step so you can feel confident about filing your taxes this year.
Contact me for more information!