Discover the potential advantages of the standard deduction for the tax year 2022-2023. Explore how it can lower your taxable income and lead to significant tax savings.

<p>Tax deductions are crucial for filing your tax return if you don’t want to pay more than your fair share.<a class="link" href="https://1800accountant.com/blog/tax-deductions-work"> Tax deductions work by deducting eligible expenses</a> from your overall taxable income. Less taxable income means owing less in taxes, and it can even mean slipping down a tax bracket. Knowing how much your tax deductions can help you make crucial tax deductions.&nbsp;</p>



<p>The expenses you can claim for deductions are not meant to be counted toward your taxable income. These are essential costs, and the IRS is intentional about not taxing the money that goes to paying them. Enter: tax deductions.&nbsp;</p>



<p>However, the system for claiming deductions is complicated, and it requires keeping records of expenses. Not everyone has a comprehensive paper trail of all their deductible expenses ready to put together for their 1040. That’s a lot of work for both the individual and the IRS.</p>



<p>One way the government makes this process smoother is with the standard deduction. This is the primary deduction option individual taxpayers should be aware of. Whether or not you claim it, it’s essential to understand how it works. Here’s what you need to know:</p>



<h2>What is the Standard Deduction?</h2>



<p><a class="link" href="https://www.irs.gov/taxtopics/tc551" target="_blank" rel="noreferrer noopener">The IRS offers the standard deduction</a> as a sizable tax deduction available to most individual taxpayers in the United States. It allows you to deduct a portion of your income from your total taxable income without claiming or proving your eligibility for specific tax deductions.&nbsp;</p>



<p>It effectively functions as a shortcut, allowing you to assume a certain amount of tax-deductible expenses and contributions, whether or not you have any records to suggest as much.&nbsp;&nbsp;&nbsp;</p>



<p>To be eligible for the standard deduction, you must be a U.S. citizen or legal resident. You can’t have a spouse filing separately with itemized deductions, and your tax return must be for a whole 12-month period.</p>



<h2>How Much is the Standard Deduction for 2022 and 2023?</h2>



<p>The IRS (Internal Revenue Service) generally makes<a class="link" href="https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022" target="_blank" rel="noreferrer noopener"> tax inflation adjustments each year to the standard deduction</a>, increasing it over time to keep pace with economic change. For the 2023 tax year, the standard deduction is $13,850 for a single individual and $27,700 for a married couple filing jointly.&nbsp;&nbsp;</p>



<p>For the 2022 tax year, which will apply as you file your tax return in April 2023, the single standard deduction is $12,950, while the deduction for a married couple filing together is $25,900.&nbsp;</p>



<p>Recent laws have increased the standard deduction significantly from what it was in the past, and it will continue to grow regularly.</p>



<h3>Increase for Senior Citizens</h3>



<p>Taxpayers 65 years or older get an increase in the standard deduction, further shielding them from a heavy tax burden. Single individuals get $1,850 more. A married couple filing jointly gets $1,500 more deducted for each spouse 65 or older.&nbsp;</p>



<h2>Standard vs. Itemized Deductions</h2>



<p>Itemized deductions involve presenting the IRS with a complete list of the tax deductions you are claiming and the amount of money they deduct from your taxes. You must present each deduction with valid documentation. This requires careful record management of your deductible expenses and the relevant receipts.</p>



<p>Here are a few of the deductions you can claim if you are itemizing your deductions:</p>



<ul>
<li>Mortgage interest</li>



<li>Student loan interest</li>



<li>Property taxes and certain other taxes</li>



<li>Charitable contributions</li>



<li>Medical costs</li>
</ul>



<p>If you claim the standard deduction, you take the shortcut and waive your right to claim specific deductions for individual taxpayers. It is a substitute option that functions in place of itemized deductions.</p>



<p>These deductions function separately from those you can claim as a small business owner if you earn income from self-employment.</p>



<h3>Charitable Contributions in the 2022 Tax Year</h3>



<p>While the rules explained above regulate how the standard deduction works in a typical year, the last couple of years has brought about unexpected changes. For the 2022 tax year, the IRS has adjusted the rules slightly to encourage charitable donations.&nbsp;</p>



<p>When you file your tax return for the 2022 tax year, you can claim deductions for donations you made to qualifying charities. This is done by itemizing deductions on your Schedule A in order to take a charitable tax deduction. It is also important to note that for 2022, the usual 60% AGI ceiling on charitable cash contribution is restored.&nbsp;</p>



<h2>When is it Better to Claim the Standard Deduction?</h2>



<p>The right option for you will depend on your particular tax situation. The only way to know for sure which is best is to add up every deduction available for you and find out whether the total is higher than the dollar amount already available with the standard deduction.&nbsp;</p>



<p>If you aren’t eligible for many deductions or don’t have the records or receipts to quantify and prove your itemized deductions, then it is likely a better choice for you to claim the standard deduction. If your situation isn’t clear, you can work with an accountant to figure out the best way forward.&nbsp;</p>



<h2>Work with an Accountant to Maximize your Deductions</h2>



<p>Find an accountant you can trust to help calculate payroll tax and work with you to increase your savings. This can come in the form of federal tax, property tax, social security tax, payroll tax, and more. &nbsp;Overall, this will help you prepare your tax documents checklist and get the notable tax forms. &nbsp;An expert can help you take advantage of every opportunity now and even prepare you for the future. They can help you set up a better record-keeping process for tracking deductible expenses in the future.&nbsp;</p>



<p>With enough planning, you can also schedule your deductible expenses to maximize deductions across multiple years. This way, you can alternate in different years between the standard deduction and itemized deductions, maximizing your overall tax savings over time.&nbsp;&nbsp;</p>



<p>Connect with <a class="link" href="https://1800accountant.com/services/small-business-taxes">tax professionals</a> at 1-800Accountant and make sure you maximize your deductions and get the optimal outcome on your tax return. Get the help you need and the savings you deserve<a class="link" href="https://1800accountant.com/services/income-taxes"> when you file your income tax return</a>.</p>

Tax deductions are crucial for filing your tax return if you don’t want to pay more than your fair share. Tax deductions work by deducting eligible expenses from your overall taxable income. Less taxable income means owing less in taxes, and it can even mean slipping down a tax bracket. Knowing how much your tax [&hellip;]

Notepad with the title "claiming tax deductions" displaying a list on a wooden desk, alongside a pen, smartphone, and keyboard.

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Standard Deduction for 2022-2023: Everything You Need to Know

<p>With tax season upon us, it's time to prepare your <a class="link" href="https://1800accountant.com/blog/end-year-tax-checklist">tax documents checklist</a>. Small business owners know that now is the time for tax preparation for 2023. Whether you’re a seasoned business owner or you’ve just passed your one-year anniversary, you know that there’s a lot of planning that goes into running a successful business. As a small business owner, there’s a lot to juggle between marketing strategies, inventory, budgeting, and taxes. Wondering how to file small business taxes efficiently? Take some time to read up on these small business end-of-year tax tips to get a jumpstart on the upcoming tax season. Your future self will thank you for a smoother tax filing!</p>



<h2><strong>Small Business Tax Planning and Tax Preparation: What’s changed for 2023?</strong></h2>



<p>The COVID-19 pandemic has dominated headlines since it broke out in 2019. It’s no surprise that this year has brought a new topic of intense focus: inflation. </p>



<p>From the gas pump to the grocery stores, inflation has impacted Americans a great deal.&nbsp;</p>



<p>In November 2021, the IRS (Internal Revenue Service) announced its<a class="link" href="https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022" target="_blank" rel="noreferrer noopener"> annual inflation adjustments</a> for the 2023 tax year. Here are a few notable changes to consider for tax planning for small businesses:</p>



<ul>
<li><strong>Medical Savings Account</strong>: Individuals who are covered with this type of plan must have an annual deductible of at least $2,450, which is a $50 increase from 2021. The maximum deductible is $3,700, $100 more than the previous year.</li>



<li><strong>Standard Deduction</strong>: This amount has increased for every type of taxpayer. The amount for married couples filing jointly is $25,900 (an $800 increase), and heads of households will have a standard tax deduction of $19,400 (a $600 increase). Single taxpayers and those who are married but filing separately have a standard deduction of $12,950, which is a $400 increase.&nbsp;</li>



<li><strong>Earned Income Tax Credit</strong>:<strong> </strong>The IRS has increased this amount to $6,935 for taxpayers with three or more qualifying children.</li>
</ul>



<h2>4 Small Business End-of-Year Tax Tips for 2023</h2>



<p>Small business owners have a lot of day-to-day responsibilities when it comes to managing the finances of their businesses. In addition to <a class="link" href="https://1800accountant.com/blog/small-business-bookkeeping-basics" target="_blank" rel="noreferrer noopener">small business bookkeeping</a>, you might also need to understand <a class="link" href="https://1800accountant.com/blog/small-business-payroll" target="_blank" rel="noreferrer noopener">how to run payroll</a> if you have employees. There’s also the aspect of <a class="link" href="https://1800accountant.com/services/small-business-taxes" target="_blank" rel="noreferrer noopener">small business taxes</a>, which can be quite complex for the average business owner.&nbsp;</p>



<p>When you <a class="link" href="https://1800accountant.com/blog/calculate-small-business-taxes" target="_blank" rel="noreferrer noopener">calculate your small business taxes</a>, the process will be easier if you follow some tax tips for small businesses. Consider the following practices to help ensure the process goes smoothly:</p>



<h3>1. Maintain Good Records</h3>



<p>Your tax prep would not go smoothly without concrete tax records. These records could help you calculate your estimated tax payment. Make sure you record your business expenses on a regular basis, regardless of the amount. Don’t wait until the end of the quarter or year to reflect on your spending on things like advertising or business-related travel. If you maintain detailed and accurate records and save related paperwork and receipts, you’ll have a much easier time deducting these expenses during tax season.</p>



<h3>2. Know Your Deductions and Credits</h3>



<p>Depending on the type of work you do, you may be entitled to a variety of tax deductions and tax credits. Self-employed folks and small business owners are often eligible to receive certain deductions and credits that sometimes get overlooked. It’s important to be aware of these items to <a class="link" href="https://1800accountant.com/blog/maximize-small-business-tax-deductions" target="_blank" rel="noreferrer noopener">maximize your savings</a>.</p>



<h3>3. Beware of Scams</h3>



<p>Don’t fall victim to scammers who try to take advantage of taxpayers through various sneaky methods. Some <a class="link" href="https://1800accountant.com/blog/common-irs-tax-scams" target="_blank" rel="noreferrer noopener">common IRS scams</a> involve criminals who impersonate the IRS, while other scams originate from the taxpayer who’s trying to avoid payment. The IRS releases an annual <a class="link" href="https://1800accountant.com/blog/irs-dirty-dozen-tax-scams">Di</a><a class="link" href="https://1800accountant.com/blog/irs-dirty-dozen-tax-scams" target="_blank" rel="noreferrer noopener">r</a><a class="link" href="https://1800accountant.com/blog/irs-dirty-dozen-tax-scams">ty Dozen list of scams</a> that are relevant to both taxpayers and tax professionals.&nbsp;</p>



<h3>4. Work with a CPA</h3>



<p>Hiring a Certified Public Accountant (CPA) to handle your small business taxes is perhaps one of the smartest steps you can take. CPAs stay well-informed about current tax laws and regulations, so you won’t have to worry about missing critical details or deadlines. Outsourcing this critical component of your business can also help <a class="link" href="https://1800accountant.com/blog/5-reasons-hire-accountant-help-small-business-taxes-year" target="_blank" rel="noreferrer noopener">save money </a>and allow you to spend time and energy on other important tasks.&nbsp;</p>



<h2>FAQs for Small Business Tax Planning</h2>



<h3>What is the best tax planning software for businesses?&nbsp;</h3>



<p>There are many options if you want to take the DIY route for your business taxes, but the best option is to work with an accountant or CPA. Your business may have unique needs, and a CPA will ask the right questions to ensure your taxes are filed correctly. A CPA will also help you maximize your deductions and credits so you’re not overpaying or missing out on tax savings.&nbsp;</p>



<h3>How do I calculate small business taxes?&nbsp;</h3>



<p>Unlike individual taxpayers who pay yearly, many small business owners must pay <a class="link" href="https://1800accountant.com/blog/quarterly-estimated-taxes" target="_blank" rel="noreferrer noopener">quarterly estimated taxes</a>. To do this, you’ll need to calculate a few different numbers, including your adjusted gross income (AGI), estimated total income, and taxable income. All of these will factor into your total estimated taxes, which you can divide by four to get your estimated quarterly tax payment.</p>



<h3>How much should a small business put back for taxes?&nbsp;</h3>



<p>Unfortunately, there’s no simple answer for how much you should save for paying taxes. Taxes will vary depending on your location and business structure. For example, a C-corporation will have a different tax rate than a sole proprietorship. These tax rates can range from 10% to 37%, but remember that tax deductions and credits will also affect how much you’ll need to pay.</p>



<h2>Plan Your Small Business Taxes with 1-800Accountant</h2>



<p>These end-of-year small business tax tips can help put you on the right track for 2023. However, it’s ultimately a good idea to consult with a <a class="link" href="https://1800accountant.com/services/small-business-taxes">professional CPA</a>. No two businesses are exactly alike, and it’s best to work with someone who understands the specific laws and regulations that will apply to your business.&nbsp;</p>



<p>The team at <a class="link" href="https://1800accountant.com/">1-800Accountant</a> can advise you on your tax obligations and ensure you maximize your small business tax savings.&nbsp;</p>

With tax season upon us, it&#8217;s time to prepare your tax documents checklist. Small business owners know that now is the time for tax preparation for 2023. Whether you’re a seasoned business owner or you’ve just passed your one-year anniversary, you know that there’s a lot of planning that goes into running a successful business. [&hellip;]

Person reviewing financial documents at a desk with a mug and glasses, overlaid with the text "end-of-year tax tips.

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4 Small Business End-of-Year Tax Tips for 2023

<p>As a small business owner, you'll have questions about your business, business procedures, and taxes. You may have entity-specific or business tax questions, making receiving the correct answers urgently.</p>



<p>When tax season arrives, small business owners will have questions but only a little time to receive proper answers, assistance, and next steps. Here are answers to small business tax questions that small business owners are asking.</p>



<h2>Top 10 Small Business Tax Questions</h2>



<p>Here are the top 10 questions and answers to common tax questions that small business owners have:</p>



<h3>1. Can I Use Scanned Copies of Receipts for Tax Purposes?&nbsp;</h3>



<p>Scanned copies of receipts are okay to save and submit for tax purposes, and the IRS allows this as long as your receipts are identical to the original receipts. Your scanned receipts should also contain identical information to your original copies.</p>



<p>If you experience a tax audit but have scanned copies of your receipts, you'll want to save these records. With an audit, the IRS may require you to submit paper copies of your scanned receipts.</p>



<h3>2. How Do Taxes Work with a Small Business?</h3>



<p>Small businesses will<a class="link" href="https://www.sba.gov/business-guide/launch-your-business/choose-business-structure" target="_blank" rel="noreferrer noopener"> file and pay</a> their taxes based on their business entity. Businesses can choose their tax year when they file taxes for the first time.</p>



<p>Federally:</p>



<ul>
<li>Corporations pay income tax on their profits, and their shareholders pay personal income tax from the corporation's dividends.</li>



<li>Partnerships and sole proprietorships pay personal income tax and self-employment taxes.</li>



<li>S corporations pay taxes as pass-through entities, and their shareholders pay personal income tax.</li>



<li>Sole proprietors pay both personal taxes and self-employment taxes.</li>



<li>Multiple-member LLCs can elect to pay taxes as a corporation, partnership, or S corp. Single-member LLCs can pay taxes as sole proprietors.</li>
</ul>



<p>Depending on where you operate your business, your business may also have local and state taxes. If so, you may also have to pay employment taxes and state income taxes.</p>



<h3>3. How Much Can a Small Business Make Before Having To Pay Taxes?</h3>



<p>A small business's exact amount before paying taxes depends on its entity. Corporations can use Form 1120 to determine how much they'll pay in taxes.</p>



<p>Other business entities, such as LLCs, partnerships, S Corporations, and sole proprietorships, have different considerations for determining their income. These entities require their business owners to report income on their personal income tax returns, which means you'll have both business and nonbusiness income on your tax return.</p>



<p>Independent contractors and sole proprietors will have to pay taxes if they earn $400 or more.&nbsp;</p>



<h3>4. What Business Expenses Can You Claim On Taxes?</h3>



<p>The IRS <a class="link" href="https://www.thebalancemoney.com/deductible-business-expenses-3192959" target="_blank" rel="noreferrer noopener">has two requirements</a> for what business owners can claim as their business expenses.&nbsp;</p>



<p>Business expenses must be both ordinary and necessary. Ordinary expenses are expenses similar businesses or trades commonly pay for, and necessary expenses assist you in doing your business.</p>



<p>You can claim considerable business expenses as tax deductions:</p>



<ul>
<li>Advertising</li>



<li>Automobile expenses&nbsp;</li>



<li>Entertainment and meal expenses&nbsp;</li>



<li>Maintenance and repairs</li>



<li>Home office expenses&nbsp;</li>



<li>Transportation expenses</li>
</ul>



<h3>5. What Information Does a Small Business Need For Taxes?</h3>



<p>Small businesses will need several documents to file their <a class="link" href="https://1800accountant.com/services/small-business-taxes">small business taxes</a>. These documents include the following:</p>



<ul>
<li>Business assets and business expense information</li>



<li>Financial statement</li>



<li>Home office expenses for business owners using their home as their primary business site.</li>



<li>Vehicle use information if you’re seeking a tax deduction for business vehicles.</li>
</ul>



<h3>6. What Is The Easiest Way To Pay Estimated Taxes?</h3>



<p>The easiest way to pay estimated taxes is to use the Electronic Federal Tax Payment System (EFTPS). Businesses and individuals can use EFTPS to make estimated tax payments weekly, bi-weekly, monthly, or on a different schedule.</p>



<h3>7. What Is The Penalty For Not Paying Quarterly Taxes?</h3>



<p>The penalty for not paying quarterly taxes is 0.5% of the amount not paid for each month or part of the month that the quarterly tax remains unpaid. There's a maximum penalty of 25% for not paying quarterly taxes.</p>



<h3>8. What Will Trigger an IRS Audit?</h3>



<p>Although IRS audits are infrequent, there are red flags that <a class="link" href="https://aofund.org/resource/top-10-irs-audit-triggers-and-what-do-if-audited/" target="_blank" rel="noreferrer noopener">trigger an audit</a>. Small businesses may experience an IRS audit for:</p>



<ol>
<li>Undergoing significant changes in business expenses and business income.</li>



<li>Filing an incomplete tax return.</li>



<li>File a tax return with errors.</li>



<li>Mixing business expenses with personal expenses.</li>



<li>Not making a business profit for several years.</li>



<li>Not filing a tax return if a business experiences a financial loss.</li>



<li>Operating a business that deals with a lot of cash.</li>
</ol>



<h3>9. Which Receipts Can I Claim on My Taxes?</h3>



<p>As you collect your <a class="link" href="https://www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep" target="_blank" rel="noreferrer noopener">business receipts</a> throughout the year, it may become difficult to know which receipts to keep for taxes.</p>



<p>&nbsp;You can claim receipts related to the following:</p>



<ul>
<li>Expenses&nbsp;</li>



<li>Gross receipts&nbsp;</li>



<li>Purchases</li>
</ul>



<p>Receipts related to expenses will show costs your business incurs other than purchases. You can claim expense receipts, including:</p>



<ul>
<li>Account statements</li>



<li>Canceled checks</li>



<li>Cash register tape receipts</li>



<li>Credit card receipts and statements</li>



<li>Invoices</li>
</ul>



<p>There are additional receipts related to business expenses that you should keep to claim as a tax deduction. The IRS requires you to prove these expenses to claim entertainment, gifts, transportation, and travel.&nbsp;</p>



<p>Gross receipts are another receipt type you can claim on your taxes. You can claim gross receipts, including:</p>



<ul>
<li>Cash register tapes</li>



<li>Deposit information&nbsp;</li>



<li>Form 1099-MISC</li>



<li>Receipt books</li>



<li>Invoices</li>
</ul>



<p>Purchases are the last receipt type that you can claim on taxes. You may use information from your purchases to claim credits or deductions on your tax return from:&nbsp;</p>



<ul>
<li>Canceled checks</li>



<li>Cash register tape receipts&nbsp;</li>



<li>Credit card receipts and statements</li>



<li>Invoices</li>
</ul>



<h3>10. Who Has To Pay Quarterly Taxes?</h3>



<p>There are three groups of people who have to make <a class="link" href="https://1800accountant.com/services/quarterly-estimated-taxes">quarterly tax payments</a>:&nbsp;</p>



<ol>
<li>Corporations</li>



<li>People without enough tax withheld&nbsp;</li>



<li>Self-employed workers</li>
</ol>



<p>Corporations may need to pay quarterly taxes if they expect to owe at least $500.</p>



<p>Second, if you need more taxes withheld, you should make quarterly tax payments. There are two criteria the IRS has for who needs to pay quarterly taxes for those not withholding enough taxes, and you'll need to meet both requirements to pay quarterly taxes in this group.</p>



<p>The first criterion is that you'll owe at least $1,000 in federal taxes after adding your tax credits and withholding. The second criterion is that your refundable credits and withholding cover the following:</p>



<ul>
<li>Less than 90% of your tax liability for the current year</li>



<li>100% of your liability for last year</li>



<li>110% for taxpayers with an adjusted gross income of $150,000 for taxpayers filing individually, or $75,000 for taxpayers who are married and filing jointly</li>
</ul>



<p>Third, self-employed workers, including freelancers and independent contractors, should pay their quarterly taxes if they owe $1,000 or more in taxes.</p>



<h3>Work with Expert Accountants To Help Navigate Small Business Taxes&nbsp;&nbsp;</h3>



<p>Small business taxes encompass different requirements for different entities. Federal, local, and state tax requirements and multiple business entities make it critical to get your small business questions answered.<br>When you need to answer small business tax questions, it's best to work with experts. Work with the expert accountants at <a class="link" href="https://1800accountant.com/services/business-tax-advisory">1-800Accountant</a> for your small business tax needs.</p>

As a small business owner, you&#8217;ll have questions about your business, business procedures, and taxes. You may have entity-specific or business tax questions, making receiving the correct answers urgently. When tax season arrives, small business owners will have questions but only a little time to receive proper answers, assistance, and next steps. Here are answers [&hellip;]

Text overlay reading "common tax questions from small business owners" on a background of scattered paper slips with tax-related terms.

Common-Tax-Questions

10 Common Small Business Tax Questions Owners Are Asking

<p>Being self-employed brings with it a lot of independence. You get to make your own choices and set your own hours. You work when you want to work!</p><p>But for better or for worse, that independence also means a lot more responsibility. You’re operating your own small business, and as a result, you’re responsible for your own <a class="link" href="https://1800accountant.com/services/industry/freelancer-self-employed">income taxes and self-employed deductions</a> in a way most working people aren’t.</p><p>If you’ve never paid or filed taxes as a small business owner before, there is a lot you should know before you get started. There are numerous ways you can bring down your overall taxable income and increase the money you get to take home. If you’re not taking advantage of these tax deductions for self-employed expenses, you'll be paying more than you should.</p><h2 class="wp-block-heading">Eliminated or Changed Write-offs for Self-employed Individuals from the Tax Cuts and Jobs Act&nbsp;&nbsp;</h2><p>Small business taxes can be extra complicated because of how frequently the laws change. The tax code can vary significantly from one year to the next, meaning you have to relearn everything all over again.&nbsp;</p><p>The 2017 Tax Cuts and Jobs Act changed a lot about small businesses; many deductions and credits were adjusted or removed entirely.&nbsp;</p><p>Here are a few <a class="link" href="https://www.investopedia.com/tax-deductions-that-are-going-away-4582165" target="_blank" rel="noreferrer noopener">tax deductions that changed or went away because of the TCJA</a>.&nbsp;</p><ul><li>Personal and dependent exemptions are suspended.&nbsp;</li><li>The standard deduction was increased significantly.</li><li>The child tax credit was increased.</li><li>Deductions for commuting expenses are more limited.</li><li>Job relocation moving expenses are no longer deductible except for active-duty military personnel.&nbsp;</li><li>Alimony expenses are no longer deductible and receiving alimony payments no longer counts as taxable income.&nbsp;</li></ul><h2 class="wp-block-heading">10 Self-Employment Tax Write-Offs to Use</h2><p>Here are ten valuable write-offs of business expenses for self-employed individuals you should include on your <a class="link" href="https://1800accountant.com/blog/small-business-tax-deductions-checklist">small business tax deductions checklist</a>.&nbsp;</p><h3 class="wp-block-heading">1. Qualified Business Income Deduction</h3><p>Every year, small businesses below a certain income level can deduct 20% of their qualified business income. QBI refers to your net income but excludes income related to capital gains, interest, or income earned outside the United States.&nbsp;&nbsp;&nbsp;</p><h3 class="wp-block-heading">2. Self-Employment Tax Deduction</h3><p>As a self-employed individual, you have to pay a higher percentage of your income into Social Security and Medicare, for a total of 15.3%. However, you can claim a deduction for half of that. 7.65% of your self-employment tax can be claimed as a business expense and not counted for your taxable income.&nbsp;</p><h3 class="wp-block-heading">3. Home Office Deduction</h3><p>Another significant source of savings is the <a class="link" href="https://1800accountant.com/blog/home-office-deduction">home office deduction</a>. However, simply working from home isn’t enough to claim this deduction. You must have a dedicated space in your home that is only used for your business, and it has to be a primary site for your work.&nbsp;</p><p>If you’re eligible for this deduction, you can claim a portion of all your home-related costs as business expenses. You can deduct a portion of your rent or mortgage and other important home repair costs in proportion to the space of your home office. All of that is in addition to the costs of any office supplies or goods you use exclusively for work.&nbsp;</p><h3 class="wp-block-heading">4. Health Insurance Premium Deduction</h3><p>If you’re not eligible for health insurance through your spouse, you can also count your health insurance premiums as a business expense. Effectively you are your own employer paying for your employee’s health insurance, so that cost should be paid with pre-tax income.&nbsp;</p><h3 class="wp-block-heading">5. Vehicle Use Deduction</h3><p>Do you frequently use your vehicle for business purposes? Commuting costs don’t count here, but other work-related travel costs can be deducted, either for a company car or your own personal vehicle.&nbsp;</p><p>To claim this deduction, you can either keep detailed records of your vehicle expenses or simply log the miles traveled for business purposes. The IRS has established a <a class="link" href="https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2023-business-use-increases-3-cents-per-mile" target="_blank" rel="noreferrer noopener">standard mileage rate</a> for tax purposes, and in 2023, most businesses can claim a deduction of 65.5 cents per mile for business, medical, charitable, or moving-related travel.</p><h3 class="wp-block-heading">6. Internet and Phone Bills Deduction</h3><p>How much do you spend on internet and phone bills? These may also be deductible expenses as far as they’re used for your business. For a home office or a personal phone that you also use for business costs, you can deduct a fraction of the total cost based on an estimate of your relative business use.</p><p>On the other hand, you might have a separate phone used only for work or even a separate internet subscription. In that case, you can deduct the full cost of those bills as necessary expenses for your business.&nbsp;&nbsp;</p><h3 class="wp-block-heading">7. Meals Deduction</h3><p>Under certain specific circumstances, you can deduct all or part of the costs related to meals or entertainment purchased as part of your work. If you take clients out for meals or bring food to your workplace to share with others, then those costs are 50% deductible.&nbsp;</p><p>There are also a few meal-related costs that can be fully deducted. To be 100% deductible, it must be food or entertainment provided as part of a party for the entire company at once, or it must be something officially included as compensation for your employees for whatever purpose.&nbsp;</p><h3 class="wp-block-heading">8. Retirement Plan Contributions</h3><p>Every year you’re permitted to deduct a significant amount of money for payments you make directly into your retirement plan. This allows you to defer paying taxes on that income until you withdraw that money later.&nbsp;</p><p>It would be wise to max out your deductible retirement contributions before the end of each year, especially if you’re likely to find yourself in a higher income tax bracket.&nbsp;</p><h3 class="wp-block-heading">9. Interest</h3><p>While the principal on many loans can’t be deducted, you can deduct the interest on loans, including your home mortgage, even if you don’t have a home office.</p><h3 class="wp-block-heading">10. Education</h3><p>The IRS sees continuing education as a regular and necessary part of the job. Any money you spend to help you do your job better or keep up with industry developments is money you can deduct for education expenses.&nbsp;</p><p>This also covers any fees you pay for professional publications or association memberships.&nbsp;</p><h2 class="wp-block-heading">Maximize Your Tax Savings With 1-800Accountant</h2><p>It takes serious dedication and know-how to efficiently utilize the tools available to reduce your taxable income and final tax bill.</p><p>It might seem overwhelming, but it doesn't have to be with 1-800Accountant in your corner. Let our <a class="link" href="https://1800accountant.com/services/small-business-taxes">experts handle your taxes</a> while you dedicate time and resources to growing your business. You’ll be able to rest easy knowing America's leading virtual accounting firm isn't leaving potential savings behind.</p>

Being self-employed brings with it a lot of independence. You get to make your own choices and set your own hours. You work when you want to work! But for better or for worse, that independence also means a lot more responsibility. You’re operating your own small business, and as a result, you’re responsible for [&hellip;]

Man researching self-employment tax deductions on his laptop in a bright, plant-filled room. text overlay: "top self-employment tax deductions.

Top-Self-Employment-Tax-Deductions

Top 10 Tax Write-Offs for Self-Employed Individuals

<p><a class="link" href="https://1800accountant.com/blog/prepare-file-small-business-tax-return">Filing taxes for your business</a> is essential to your responsibilities as a small business owner, but it can be complicated, especially if you're not prepared. One thing leads to another, and you can fall further and further behind on your taxes. </p>



<p>Even if you're past the due date for your tax return, it's not too late to file a return for back taxes. The more significant challenge will be figuring out how to file back taxes without records.&nbsp;</p>



<p>Preparing your tax return will be difficult if you don't have a complete accounting of your finances. How can you pay what you owe if you don't know much income you've received? Fortunately, you have options. Read on to learn how to file back taxes without records and the importance of doing so.&nbsp;</p>



<h2>Why You Should File Back Taxes for Your Small Business</h2>



<p>There are many good reasons to file your income tax returns, even if you are far beyond the deadline. Even late, it’s worth the effort to avoid what happens if you <a class="link" href="https://1800accountant.com/blog/what-happens-if-you-dont-file-taxes">don’t file business taxes</a>. </p>



<p>If you don't file a return, the IRS will eventually file a substitute return based on their data to estimate what you owe. Likely, they won't include every benefit and deduction you're eligible for. You will also surrender any possible tax refunds if you don’t file a return.&nbsp;</p>



<p>There is also a failure to file penalty fine. If you have unpaid taxes, that amount will grow every month you continue without filing a late return for up to five months afterward. </p>



<p>It’s worth figuring out how to catch up on unfiled taxes to claim those deductions and receive your refund. <a class="link" href="https://1800accountant.com/services/small-business-taxes">Filing your small business taxes</a> also helps you be sure you've paid everything you owe, no matter how late you file. Unpaid taxes will rack up significant fines over time, and the IRS will eventually act to collect them on their own if you don't pay.</p>



<h2>How Many Years Back Can You File Delinquent Taxes?</h2>



<p>The IRS will accept all past-due tax returns. However, if you want to claim a tax refund or credit, you must file your return within three years of the original deadline. <a class="link" href="https://www.irs.gov/businesses/small-businesses-self-employed/filing-past-due-tax-returns" target="_blank" rel="noreferrer noopener">Filing past-due tax returns</a> are less valuable if you go further back than that.&nbsp;</p>



<p>You should file past taxes for at least the last three years to claim any benefits you left behind, ideally up to the previous six years. How many years you can file back taxes may also depend on the data you still have from those years.&nbsp;</p>



<h2>How To File Back Taxes Without Records </h2>



<p>You may wonder, "Can I file my back taxes?" The answer is yes, but you might not want to do it alone, especially when you don't have significant records to reference. You can file back taxes just like any other 1040 tax return.&nbsp;&nbsp;&nbsp;</p>



<p>The IRS will accept your past-due federal tax returns as soon as you submit them. For state tax issues, you should look up your individual state's policies or speak to an <a class="link" href="https://1800accountant.com/services/business-tax-advisory">accounting professional</a>.&nbsp;</p>



<p>If you don't have a good record of your finances over the period in question, however, it will be more challenging to figure out your tax bill. Here’s how to get started:</p>



<h3>Collect Financial Records</h3>



<p>To file your return, the first thing you need to do to get started is to collect all the financial data you can find on the tax years in question. You may not have consistent or reliable bookkeeping, but there must be some clues or records you can refer to that will help you assess your tax liability.&nbsp;</p>



<p>These are some of the most common sources you might be able to use to put together your past-due tax return:&nbsp;</p>



<ul>
<li>Bank account and credit card statements</li>



<li>Tax forms like W-2s and Social Security statements</li>



<li>Receipts from business expenses</li>



<li>Old emails or paper records of transactions</li>
</ul>



<h3>Requesting Tax Transcripts</h3>



<p>You might not find enough information to go in your records alone. Fortunately, the IRS also holds various records and forms for at least three years. You can request IRS tax transcripts with form 4506-T to <a class="link" href="https://www.irs.gov/individuals/get-transcript" target="_blank" rel="noreferrer noopener">get your tax record</a>.&nbsp;</p>



<p>There are a few distinct kinds of tax transcript you may be able to request:&nbsp;</p>



<ul>
<li>Transcripts of tax returns you submitted in a prior year</li>



<li>A report on your basic filing status and taxable income according to IRS records</li>



<li>A wage and income transcript brings together 1099s, W-2s, and any other relevant paperwork the IRS has received from other businesses or financial institutions</li>
</ul>



<h3>Work with Forensic Accounting Experts</h3>



<p>If you’re struggling and still don’t know how to file back taxes without W-2s or other records, you may need to contract with a tax professional or a team with specialties in forensic accounting. Forensic accounting specializes in investigating and reconstructing business activity without regular records.&nbsp;</p>



<p>You want to be sure you get your tax returns done right, so you want to work with people who know how to put the data together, maximize your savings, and get it done right to <a class="link" href="https://1800accountant.com/services/audit-defense">defend you from a potential audit</a>.&nbsp;</p>



<h2>How 1-800Accountant Can Help With Your Delinquent Business Taxes</h2>



<p>If you’re trying to figure out how to file back taxes without records, you may need tax preparation help from the experts. Find an accountant you can trust who can help file back taxes for your company and get you back on track with your bookkeeping for the future.&nbsp;</p>



<p>1-800 Accountant is standing by to support your company with professional <a class="link" href="https://1800accountant.com/services/business-tax-advisory">small business tax advisory services</a>. If you’re behind, don’t hesitate to get help now and get the situation under control.&nbsp;&nbsp;</p>

Filing taxes for your business is essential to your responsibilities as a small business owner, but it can be complicated, especially if you&#8217;re not prepared. One thing leads to another, and you can fall further and further behind on your taxes. Even if you&#8217;re past the due date for your tax return, it&#8217;s not too [&hellip;]

Young man reviewing and calculating his business finances.

File-Back-Taxes-Without-Records

How to File Back Taxes Without Records For Your Small Business

<p>Tax liability is something that affects all small businesses. For small businesses, several factors play into tax liability, such as business entity type, due dates, and specific taxes owed.</p><p>Small businesses can reduce their tax liability by implementing tax-saving strategies. There are ways to save money for yourself and your employees for almost every business entity. Continue reading to learn more about how to reduce tax liability as a small business owner.</p><h2>What Is Business Tax Liability?</h2><p>Small business tax liability is <a class="link" href="https://www.sba.gov/business-guide/manage-your-business/pay-taxes" target="_blank" rel="noreferrer noopener">the tax owed</a> on your business income, and your business entity type determines your tax liability at the federal and state levels.&nbsp;</p><p>Federally, all businesses will pay taxes based on their business entity. Some federal payments require payments throughout the year. You may also have federal tax payment requirements if your small business has employees. However, for those businesses functioning as pass-through entities, the tax liability is carried by the S Corporation shareholder or by the partner in a partnership at the federal level. State rules can differ for business entities.&nbsp;</p><p>Your tax liability can be for employment and income taxes at the state level. Your business entity will also determine your tax liability for state taxes. For businesses with employees, you can expect to pay different taxes.&nbsp;</p><p>Although this differs by state, you can expect to pay these business state taxes:</p><ul><li>Temporary disability insurance</li><li>Unemployment insurance tax</li><li>Workers’ compensation insurance</li></ul><h2>Different Types of Business Taxes?</h2><p><a class="link" href="https://www.usa.gov/small-business" target="_blank" rel="noreferrer noopener">Many business taxes</a> apply to small businesses:</p><ul><li>Employment tax</li><li>Estimated tax</li><li>Excise tax&nbsp;</li><li>Income tax</li><li>Property tax</li><li>Sales and use tax</li><li>Self-employment tax&nbsp;</li></ul><p>Employment taxes apply to employers who have employees. There are four employment taxes:&nbsp;</p><ul><li>Federal income tax withholding</li><li>Federal unemployment insurance tax (FUTA)&nbsp;</li><li>State unemployment insurance tax (SUI)</li><li>Medicare and Social Security taxes</li></ul><p><a class="link" href="https://1800accountant.com/services/quarterly-estimated-taxes">Estimated taxes</a> are another business tax from income not subject to tax withholding. You can pay estimated taxes if you don't withhold taxes voluntarily.&nbsp;</p><p>Estimated taxes include income from:&nbsp;</p><ul><li>Dividends</li><li>Interest&nbsp;</li><li>Self-employment</li></ul><p>Excise taxes are taxes you'll pay for using certain goods or services. You’ll pay excise taxes if your small business:&nbsp;</p><ul><li>Manufactures or sells certain products</li><li>Operates certain kinds of businesses&nbsp;</li><li>Receives payment for specific services</li><li>Uses various types of equipment, facilities, or products</li></ul><p>Income tax is another business tax. Most business entities will pay federal income tax, except partnerships. Instead, those individuals within a partnership will report their profits and losses on their individual tax returns.</p><p>States also charge income tax on businesses. Not every state charges businesses income tax, so this portion of income tax can vary depending on where your small business operates.</p><p>Property tax is a business tax that affects business owners. States have different categories on which properties are taxable.&nbsp;</p><p>Some states collect property tax for businesses based in commercial real estate locations. Other states can collect property tax based on the following, which are referred to as tangible personal property taxes:&nbsp;</p><ul><li>Business assets&nbsp;</li><li>Business vehicles</li><li>Computer equipment</li></ul><p>Sales and use tax is another tax that states may charge small businesses taxes for their use of goods and services whenever sales taxes aren't collected.&nbsp;</p><ul><li>When this occurs, it may apply to goods and services purchased out of state.&nbsp;</li><li>There are exclusions to what states can charge sales tax, including food, medicine, and utilities.</li></ul><p>Self-employment tax is the last business tax that business owners may be subject to, which applies to those who own their business.&nbsp;</p><h2>4 Ways To Reduce Small Business Tax Liability&nbsp;</h2><p>There are four ways to reduce the tax burden for <a class="link" href="https://www.thebalancemoney.com/ways-to-save-on-business-taxes-397610" target="_blank" rel="noreferrer noopener">small business owners</a>:</p><h3>Set Up and Fund Your Retirement Plan</h3><p>The first way to reduce taxable income is to set up a retirement plan. Small business owners can set up a retirement plan for themselves and their employees if their business entity has employees.</p><p>If you set your retirement plan as a qualified plan, you may qualify for additional tax savings.&nbsp;</p><h3>Qualified Busines Income Tax Deduction</h3><p>The second way to reduce taxable income is to use the Qualified Business Income Tax Deduction. The Qualified Business Income Tax deduction allows three pass-through business entities to deduct 20% of their qualifying business income:&nbsp;</p><ul><li>A partnership</li><li>A sole proprietorship</li><li>An S Corporation</li></ul><p>You can claim this deduction on top of claiming other business tax deductions, and you can claim this deduction whether you’re a single filer or if you’re married and filing jointly. For most businesses, there are income limits for this deduction.</p><h3>Take Tax Credits</h3><p>The third way to reduce the taxes you owe is to take tax credits. Small businesses may qualify for various business tax credits related to:&nbsp;</p><ul><li>Hiring employees</li><li>Providing health coverage to employees</li><li>The environment</li><li>Work opportunities&nbsp;</li></ul><h3>Tax Deductions</h3><p>The fourth way small businesses can reduce their taxes is by using<a class="link" href="https://1800accountant.com/blog/small-business-tax-deductions-checklist"> tax deductions</a>. There are deductions beyond The Qualified Business Income deduction, which can help your small business and its tax liability. These deductions apply to:</p><ul><li>Business equipment</li><li>Real estate</li><li>Machinery</li><li>Vehicles</li></ul><p>Working with <a class="link" href="https://1800accountant.com/blog/hiring-tax-professional-small-business">a tax professional</a> will help you know which tax credits and deductions you qualify for.</p><h2>When Are Business Taxes Due?</h2><p>Business taxes have <a class="link" href="https://www.irs.gov/faqs/small-business-self-employed-other-business/starting-or-ending-a-business/starting-or-ending-a-business-3" target="_blank" rel="noreferrer noopener">different due dates</a> based on the type of business entity and when its year ends.&nbsp;</p><ul><li><strong>C corporations</strong> can choose a fiscal year-end date</li><li><strong>Partnerships</strong> mostly use the calendar year for business tax payments</li><li><strong>S corporations</strong> use the calendar year to establish their due date</li></ul><h3>Business Entity Due Dates</h3><div class="rte-table-container"><table><thead><tr class="table-data-container"><td class="cell-0">Business Entity</td><td class="cell-0">Tax Return Due Date</td></tr></thead><tbody><tr class="table-data-container"><td>Corporations</td><td>April 15</td></tr><tr class="table-data-container"><td>Partnerships</td><td>March 15</td></tr><tr class="table-data-container"><td>S Corporations</td><td>March 15</td></tr><tr class="table-data-container"><td>Single-member LLCs</td><td>April 15</td></tr><tr class="table-data-container"><td>Sole Proprietorships</td><td>April 15</td></tr></tbody></table></div><p>Please note that for single-member LLCs and sole proprietorships, the due date aligns with the individual tax filing due date (Form 1040).</p><h3>LLCs Filing As Due Dates</h3><p>LLCs with multiple members can elect to pay business taxes as a corporation, partnership, or S Corporation, which presents three due date options depending on the chosen entity type:&nbsp;</p><div class="rte-table-container"><table><thead><tr class="table-data-container"><td class="cell-0">LLC Filing Type</td><td class="cell-0">Tax Return Due Date</td></tr></thead><tbody><tr class="table-data-container"><td>LLC filing as a Partnership</td><td>March 15</td></tr><tr class="table-data-container"><td>LLC filing as a Corporation</td><td>April 15</td></tr><tr class="table-data-container"><td>LLC filing as an S corp</td><td>March 15</td></tr></tbody></table></div><h3>Quarterly Estimated Tax Due Dates</h3><p>If you’re subject to estimated taxes, there are additional deadlines. Estimated taxes are due quarterly on:&nbsp;</p><div class="rte-table-container"><table><thead><tr class="table-data-container"><td class="cell-0">Payment Period</td><td class="cell-0">Estimated Tax Due Date</td></tr></thead><tbody><tr class="table-data-container"><td>January 1 - March 31</td><td>April 15</td></tr><tr class="table-data-container"><td>April 1 - May 31</td><td>June 15</td></tr><tr class="table-data-container"><td>June 1 - August 31</td><td>September 15</td></tr><tr class="table-data-container"><td>September 1 - December 31</td><td>January 15</td></tr></tbody></table></div><p>However, in practice, estimated tax payments are credited when paid.</p><h2>Reduce Your Tax Liability by Partnering With an Expert</h2><p>Determining your tax liability can help you, your employees, and your small business. Given how many variables there are to determine tax liability, you’ll want to work with tax professionals.</p><p>Small business owners may have several taxes to pay, but you have options available. When you need help with small business taxes, you’ll want to ensure you get the help you need. Work with the <a class="link" href="https://1800accountant.com/services/small-business-taxes">small business tax accountants</a> at 1-800Accountant for your small business tax needs.</p>

Tax liability is something that affects all small businesses. For small businesses, several factors play into tax liability, such as business entity type, due dates, and specific taxes owed. Small businesses can reduce their tax liability by implementing tax-saving strategies. There are ways to save money for yourself and your employees for almost every business [&hellip;]

One hundred dollar bills laying on top small business tax forms as the business owner ponders how to reduce their tax liability.

Reduce-Tax-Liability-for-Small-Businesses

How To Reduce Tax Liability For Small Businesses

<p>Influencers are tastemakers who shape what their dedicated audiences will embrace or avoid. In some industries, an influencer's word can mean much more than a celebrity spokesperson or a famous athlete, which isn't lost on companies engaged in a tight battle for consumer dollars.<br><br>The influx of money, access, and power to this emerging industry has turned hobbyists into professionals overnight. Whether it's what they signed up for or not, influencing can be a real business that comes with real responsibilities. And if you shirk those responsibilities related to your income or aren't proactive about it, IRS penalties and scrutiny could follow.<br><br>Whether you're an established influencer or a hobbyist aspiring to become one, use this guide for influencer taxes to help you with filing taxes as an influencer during the upcoming tax season.&nbsp;</p>



<h2>Do Influencers Pay Taxes?</h2>



<p>If you're earning money from your efforts as an influencer, <a class="link" href="https://1800accountant.com/blog/influencer-accounting">you must pay taxes</a> on that income.&nbsp;<br>Like other professions, the amount of money you make will dictate how you file with the IRS.<br><br>Influencers typically work for themselves, so they are subject to a self-employment tax (SE tax) and an income tax. If you're an influencer making more than $600 per year, you must file Form 1099-NEC with the IRS. If you're making below that amount, you can file a Form 1040 with the IRS on your income tax return.&nbsp;<br></p>



<p>Remember that this is related to the money you bring in, not gifts or product samples you might receive. However, there are instances where you might have to report gifts and samples to the IRS.</p>



<h2>Do Influencers Pay Taxes on Gifts?</h2>



<p>Influencers regularly receive product samples and review materials from companies that wish to make inroads with a particular audience. The IRS views these materials as "gifts" on which you might have to pay taxes.</p>



<p>When a brand gifts a product and the value exceeds $100, you must include that in your tax filing to the IRS. If the total value of the product is less than $100, you do not need to declare this when filing your taxes. </p>



<p>It's important that influencers keep detailed records of every gift received and its value to avoid, this will help avoid stress during tax season. Remember brands often do not disclose the value of their gifts, and it's up to the influencer to declare during tax season. </p>



<h2>Do Influencers Need an LLC?</h2>



<p>Whether you need an LLC or not depends on timing. If you're starting and haven't cleared the $600 income threshold yet, it's best to wait.<br></p>



<p>But if the income from your influencer business is growing, it might be time to seriously consider making your business official by forming an LLC. But there are several different business entities for influencers to consider.&nbsp;</p>



<h2>What are the Different Influencer Business Entities?</h2>



<p>There are three main business entities influencers should consider forming as:</p>



<ul>
<li>Sole proprietorship</li>



<li>Independent contractor</li>



<li>LLC</li>
</ul>



<h3>Sole Proprietorship</h3>



<p>A sole proprietor is a self-employed individual who owns and operates a business. Influencers who form a sole proprietorship file their taxes using their personal income tax return and social security number.&nbsp;</p>



<p>Influencers will use <a class="link" href="https://www.irs.gov/forms-pubs/about-schedule-c-form-1040" target="_blank" rel="noreferrer noopener">Form 1040 and the Schedule C</a> supplement to disclose income and losses from their businesses.<br></p>



<h3>Independent Contractor</h3>



<p>There are similarities between sole proprietorships and independent contractors, with an important distinction. Independent contractors work for others on a contractual basis. Doctors and lawyers often operate as independent contractors, and influencers certainly can too.<br><br>The businesses influencers collaborate with will send a Form 1099 at the end of the fiscal year. This form will illustrate the exact amount of money you made that year working with that business or brand.&nbsp;</p>



<h3>LLC</h3>



<p>Forming as an LLC introduces influencers to a more formal business entity registered with their state.&nbsp;</p>



<p>Influencers who form an LLC enjoy simplicity and flexibility in taxing and protecting their personal assets, shielding them from business liabilities.<br><br>Once they form an LLC, Influencers will have 75 days to select a different business structure for their new company, such as an S corporation. They can also opt to stay as an LLC.&nbsp;&nbsp;</p>



<h2>Top five influencer tax write-offs</h2>



<p>There are several tax deductions influencers may be able to utilize. Some of the most popular deductions for influencers include:&nbsp;</p>



<h3>Work Phone</h3>



<p>Your phone bill is partially deductible if you're using it for work activities. Itemize work calls on your bill and provide a brief explanation of each charge.&nbsp;</p>



<h3>Office Supplies</h3>



<p>Stationery, photocopies, monitors, and more are tax deductible if used for business-related purposes.&nbsp;</p>



<h3>Business Website</h3>



<p>Your business's website hosting fee and associated assets, such as stock photos or a web theme, are tax-deductible.</p>



<h3>Advertising</h3>



<p>Your budget for ads, such as those found on social media and in search results, is tax-deductible for your business.</p>



<h3>Internet Access</h3>



<p>Accessing the internet is essential to most influencers' jobs, and you can write that recurring bill off.&nbsp;</p>



<h2>Work with experts that specialize in influencer taxes.</h2>



<p><a class="link" href="https://1800accountant.com/services/industry/freelancer-self-employed">Influencer accounting</a> can be complicated, and choosing the right path to keep the most money in your pocket can be agonizing. That's why so many influencers decide to work with 1-800Accountant, America's leading virtual accounting firm for small business owners just like you. Our team of experts who specialize in working with influencers in your state will provide <a class="link" href="https://1800accountant.com/services/business-tax-advisory">periodic advisory</a> and a year-round strategy to maximize your tax savings. Working with 1-800Accoutant allows you to continue influencing while we handle the rest. All it takes is a quick call to get started!</p>

Influencers are tastemakers who shape what their dedicated audiences will embrace or avoid. In some industries, an influencer&#8217;s word can mean much more than a celebrity spokesperson or a famous athlete, which isn&#8217;t lost on companies engaged in a tight battle for consumer dollars. The influx of money, access, and power to this emerging industry [&hellip;]

Young man creating a video for his influencer business.

Influencer-Taxes-Everything-You-Need-to-Know

Influencer Taxes: Everything You Need to Know to Navigate Tax Season

<span style="font-weight: 400;">There are more ways to be a </span><span style="font-weight: 400;">self-employed personal trainer</span><span style="font-weight: 400;"> today than ever. You could be a </span><span style="font-weight: 400;">traveling personal trainer</span><span style="font-weight: 400;">, coach, or contractor for a larger fitness organization or even offer online training services!</span>

<span style="font-weight: 400;">Whatever your work looks like, you've put in tremendous time, money, and labor to make that work possible. When you're working for yourself, there's no one else but you to set up the structure and support your work.</span>

<span style="font-weight: 400;">Fortunately, there are </span><span style="font-weight: 400;">tax deductions for fitness professionals</span><span style="font-weight: 400;"> that will recognize your massive effort and expense. Explore this guide to </span><span style="font-weight: 400;">personal trainer tax deductions</span><span style="font-weight: 400;"> and ensure you get the tax savings you're eligible for.</span>
<h2><span style="font-weight: 400;">Can I Deduct Personal Trainer Expenses</span><span style="font-weight: 400;">?</span><b> </b></h2>
<span style="font-weight: 400;">You can deduct business expenses from your taxable income as a self-employed personal trainer, which is a crucial part of your </span><span style="font-weight: 400;">personal trainer taxes</span><span style="font-weight: 400;">. Money used to support your business shouldn't count as taxable profit. </span>

<span style="font-weight: 400;">Consider working with a professional if you’re concerned about deductions or you’ve never done your taxes before. The stakes are high, and you may </span><a class="link" href="https://1800accountant.com/blog/reasons-you-need-accountant-self-employment"><span style="font-weight: 400;">need an accountant to help you with your self-employed tax return</span></a><span style="font-weight: 400;"> before </span><span style="font-weight: 400;">tax time</span><span style="font-weight: 400;"> arrives.   </span>
<h2><span style="font-weight: 400;">5 Deductions You Can Claim as a Personal Trainer or Fitness Coach</span></h2>
<span style="font-weight: 400;">You can claim deductions for many of the costs of doing business as a personal trainer or fitness coach. Here are a few of the significant </span><span style="font-weight: 400;">tax deductions for personal trainers</span><span style="font-weight: 400;"> you can take advantage of:</span>
<h3><span style="font-weight: 400;">1. Exercise Equipment and Supplies</span></h3>
<span style="font-weight: 400;">Personal trainers often work with their clients using various equipment, from hand weights to treadmills and elliptical machines. If you purchase this equipment for your small business on your own, you should claim a tax deduction for it. </span>

<span style="font-weight: 400;">If you see clients in a training room, you should be able to write off any </span><span style="font-weight: 400;">personal training</span><span style="font-weight: 400;"> equipment costs incurred as business expenses. However, you can’t deduct expenses for your home gym if you don’t use it for a business-related purpose.</span>
<h3><span style="font-weight: 400;">2. Certification &amp; Education Costs</span></h3>
<span style="font-weight: 400;">Personal trainers</span><span style="font-weight: 400;"> can deduct all expenses for required licensing and continuing education, including obtaining official certificates or maintaining your expertise. </span>

<span style="font-weight: 400;">You can deduct expenses for business-related books, supplies, and subscriptions to fitness websites, publications, or journals relevant to your field. Plus, you can deduct specific membership fees if you belong to a professional association.</span>
<h3><span style="font-weight: 400;">3. Office Costs</span></h3>
<span style="font-weight: 400;">Where do you conduct your work? If you rent a gym or </span><span style="font-weight: 400;">office space</span><span style="font-weight: 400;">, all costs associated with that space can be claimed as </span><span style="font-weight: 400;">deductions on your taxes</span><span style="font-weight: 400;">. </span>

<span style="font-weight: 400;">If you keep a </span><span style="font-weight: 400;">home office</span><span style="font-weight: 400;"> where you </span><span style="font-weight: 400;">train clients</span><span style="font-weight: 400;"> in your own space, you can claim a corresponding portion of your home rent and utility costs, assuming that the home office space is used exclusively for business purposes.</span>

<span style="font-weight: 400;">Other varied office-related expenses are also deductible, including anything from paper and staplers to printer ink and accounting software.</span>
<h3><span style="font-weight: 400;">4. Travel Expenses</span></h3>
<span style="font-weight: 400;">If you travel to seminars, conferences, or events for personal trainers, you can claim your travel and hotel costs as part of your personal </span><span style="font-weight: 400;">trainer tax deductions</span><span style="font-weight: 400;">. </span>

<span style="font-weight: 400;">When traveling out of town for work or driving long distances to </span><span style="font-weight: 400;">training sessions</span><span style="font-weight: 400;">, you can also write off mileage on your personal vehicle. When you write off mileage, you can either add up actual vehicle expenses or </span><a class="link" href="https://www.irs.gov/tax-professionals/standard-mileage-rates" target="_blank" rel="noopener"><span style="font-weight: 400;">use the standard mileage rate set by the IRS</span></a><span style="font-weight: 400;">. </span>
<h3><span style="font-weight: 400;">5. Liability &amp; Health Insurance Premiums</span></h3>
<span style="font-weight: 400;">Tax deductions for athletic coaches</span><span style="font-weight: 400;"> and trainers include insurance. If you pay your liability insurance, that's a tax-deductible expense. Self-employed trainers can also claim </span><span style="font-weight: 400;">health insurance</span><span style="font-weight: 400;"> premiums as business expenses. </span>

<span style="font-weight: 400;">You can also deduct uninsured </span><span style="font-weight: 400;">medical expense</span><span style="font-weight: 400;">s, but they're not business expenses, which means you can only claim them if you're itemizing your personal deductions.</span>
<h2><span style="font-weight: 400;">What Else Qualifies as Tax-Deductible Expenses?</span></h2>
<span style="font-weight: 400;">What can I deduct from my taxes</span><span style="font-weight: 400;"> for my </span><span style="font-weight: 400;">fitness business</span><span style="font-weight: 400;">? You should be able to claim deductions for nearly any </span><span style="font-weight: 400;">business expense</span><span style="font-weight: 400;"> you can justify as being necessary for your work. However, this only applies to your </span><span style="font-weight: 400;">self-employed personal trainer taxes</span><span style="font-weight: 400;">. If you are a W-2 employee, you can only claim personal deductions if you are itemizing your deductions. </span>
<h2><span style="font-weight: 400;">How to Claim </span><span style="font-weight: 400;">Personal Trainer Tax Deductions</span></h2>
<span style="font-weight: 400;">As you </span><a class="link" href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor"><span style="font-weight: 400;">prepare to file taxes as an independent contractor</span></a><span style="font-weight: 400;">, keeping careful records of your </span><span style="font-weight: 400;">income and expenses</span><span style="font-weight: 400;"> is the most important thing. You need receipts testifying to the business expenses you'll be claiming. </span>

<span style="font-weight: 400;">You'll fill out your 1040 personal tax return as usual, and here you can claim the standard deduction or itemize your personal deductions. Then you'll move on to </span><a class="link" href="https://www.irs.gov/forms-pubs/about-schedule-c-form-1040" target="_blank" rel="noopener"><span style="font-weight: 400;">IRS 1040 Schedule C, Profit or Loss from Business</span></a><span style="font-weight: 400;">, which is the form you'll use to report your personal business income and deductions. Your business expenses count as losses associated with that business.   </span>

<span style="font-weight: 400;">Don’t hesitate to seek help from an accountant as you work on putting together your small business tax return. </span>
<h3><span style="font-weight: 400;">How We Can Help You Maximize Your Tax Deductions</span></h3>
<span style="font-weight: 400;">For more <a class="link" href="https://1800accountant.com/services/small-business-taxes">help with your small business taxes</a> and finding personal trainer tax deductions, turn to the accounting experts at 1-800Accountant. Whether you're a small business owner or a self-employed individual working on your <a class="link" href="https://1800accountant.com/services/industry/freelancer-self-employed">personal trainer tax return</a>, we can help you keep more of the money you work hard to make.</span>

There are more ways to be a self-employed personal trainer today than ever. You could be a traveling personal trainer, coach, or contractor for a larger fitness organization or even offer online training services! Whatever your work looks like, you&#8217;ve put in tremendous time, money, and labor to make that work possible. When you&#8217;re working [&hellip;]

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Getting Financially Fit: Top 5 Personal Trainer Tax Deductions

<p>Tax law is complicated, especially for businesses, and there is no shortage of challenges and pitfalls business owners can run into if they’re not prepared. <a class="link" href="https://1800accountant.com/services/industry/nonprofit">Nonprofit taxes</a> and operations come with their own unique set of challenges as well.&nbsp;</p><p>The IRS regulates nonprofit organizations in the United States with very precise tax regulations. The rules and requirements for nonprofit taxes differ from other entity types, but the stakes for understanding them are just as high.&nbsp;</p><p>Take the time to read through this guide to figure out what your obligations are! If you know your requirements ahead of time, you can plan appropriately for tax compliance.&nbsp;&nbsp;</p><h2>Do Non-profits Pay Taxes?&nbsp;</h2><p>If you know anything about operating a nonprofit in the United States, you probably know they don’t have to pay taxes like other businesses. However, that doesn’t mean they can ignore IRS regulations.</p><p>Does a nonprofit organization pay taxes? The short answer is that they are exempt from many federal and state taxes, but not all of them. Nonprofits still make payments to Social Security and Medicare and must submit tax documentation annually according to specific IRS nonprofit filing requirements.&nbsp;&nbsp;</p><h3>Types of Non-profit Organizations</h3><p>Nonprofits in the United States include a variety of organizations classified under section 501(c) of the U.S. tax code. The most common nonprofits are 501(c)(3) organizations, including private foundations and other charitable organizations formed for some kind of public benefit.&nbsp;</p><h2>Benefits of a Non-profit Business</h2><p>Having officially <a class="link" href="https://www.irs.gov/charities-and-nonprofits" target="_blank" rel="noreferrer noopener">organized charities and nonprofits</a> offers their owners a lot of benefits. Some of these benefits are shared with other registered or incorporated businesses, and some are specific to nonprofits:</p><ul><li>Nonprofit tax exemptions</li><li>Private donations to qualifying nonprofits are tax-deductible</li><li>Shields individuals stakeholders from financial liability</li><li>Eligible for grants from private and government sources</li><li>Gives business a separate entity detached from any private individual&nbsp;&nbsp;</li></ul><h3>Nonprofit Tax Exemptions</h3><p>Likely the biggest benefit to <a class="link" href="https://1800accountant.com/blog/non-profit-business-entities" target="_self">running a nonprofit organization</a> is the tax-exempt status. Because the company is formed to benefit the public good and not produce profit for individual owners, it is not subject to the income taxes that apply to other business profits.&nbsp;</p><p>Nonprofits are essentially exempt from federal taxes outside payroll-related taxes, assuming they maintain their status with the IRS. Key nonprofit tax exemptions include:</p><ul><li>Federal income tax</li><li>Federal property tax</li><li>Federal sales tax&nbsp;</li><li>Many states offer exemptions for income tax and sometimes sales tax at the state level</li></ul><h3>How Do You Keep Tax Exempt Status?&nbsp;</h3><p>Nonprofit tax benefits make a big difference in supporting your company and its mission. However, preserving those benefits can take a lot of work. You must apply to initially receive tax-exempt status for your nonprofit. <a class="link" href="https://www.irs.gov/charities-non-profits/tax-law-compliance-before-exempt-status-is-recognized" target="_blank" rel="noreferrer noopener">Maintaining tax-exempt status</a> requires careful compliance with all IRS regulations:</p><ul><li>Nonprofit operations must clearly be directed toward qualifying exempt purposes under the law, such as education, religion, scientific advancement, or other well-defined charitable aims</li><li>No contributions directly to a political campaign</li><li>No advocacy on behalf of a particular political candidate</li><li>Business operations cannot produce profit directly for private interests or shareholders</li><li>Nonprofit organizations must submit annual information returns to the IRS reporting on all finances</li></ul><h2>Common Nonprofit Tax Forms</h2><p>To stay in compliance, nonprofits must submit an annual return report on their finances. This will usually involve some variation of <a class="link" href="https://www.irs.gov/charities-non-profits/form-990-resources-and-tools" target="_blank" rel="noreferrer noopener">IRS Form 990, an informational return</a> specifically designed for tax-exempt organizations.&nbsp;</p><p>State forms and exemption criteria vary. However, these are the principal tax forms you will need at the federal level:</p><ul><li><a class="link" href="https://www.irs.gov/pub/irs-pdf/f990.pdf" target="_blank" rel="noreferrer noopener">Form 990</a></li><li><a class="link" href="https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard" target="_blank" rel="noreferrer noopener">Form 990-N</a></li><li><a class="link" href="https://www.irs.gov/pub/irs-pdf/f990ez.pdf" target="_blank" rel="noreferrer noopener">Form 990-EZ</a></li><li><a class="link" href="https://www.irs.gov/pub/irs-pdf/f990pf.pdf" target="_blank" rel="noreferrer noopener">Form 990-PF</a></li></ul><h3>IRS Form 990&nbsp;</h3><p>IRS Form 990 is the primary document used for reporting nonprofit taxes. It is an annual information return (AIR) that demonstrates a nonprofit’s compliance with nonprofit regulations.&nbsp;</p><p>Form 990 briefly describes a company’s mission and structure, then makes a full report of revenue and expenses, making it clear that expenses are directed in line with the stated mission.&nbsp;&nbsp;</p><h3>IRS Form 990-N</h3><p>Any tax-exempt organization can meet its AIR requirements with a full 990. However, nonprofits below certain size limits can file substitute forms that require less thorough reporting.</p><p>Public charities and similar nonprofit organizations that normally receive less than $50,000 in gross receipts can file 990-N. IRS form 990-N is a simple e-postcard that can be filled out and submitted online.</p><h3>IRS Form 990-EZ</h3><p>Form 990-EZ is an intermediate return for organizations whose gross annual receipts are less than $200,000. The nonprofit’s total assets must add up to less than $500,000.&nbsp;&nbsp;</p><h3>IRS Form 990-PF</h3><p>Form 990-PF is the AIR form for all private foundations with tax-exempt status. This applies regardless of their actual financial status or total assets.&nbsp;</p><h2>When are non-profit tax returns due in 2023?</h2><p>Nonprofit tax deadlines vary depending on your organization’s fiscal year. You are required to file your 990 AIR by the 15th of the fifth month past the end of your established accounting period.&nbsp;</p><p>For most organizations that use the calendar year, the nonprofit tax return due date is May 15, 2023, for the 2022 tax year.&nbsp;&nbsp;&nbsp;&nbsp;</p><h2>How to File Your Nonprofit Tax Return</h2><p>As of July 2019, all 990 nonprofit tax returns must be submitted by electronic filing online. You must fill out the AIR with all relevant financial information and provide any supporting documentation required for transparency and establish that you are complying with nonprofit requirements.&nbsp;</p><p>You will receive a follow-up letter requesting more information if you fail to include any necessary pieces of information in your return.&nbsp;&nbsp;</p><h3>Filing on Your Own&nbsp;</h3><p>If you’re trying to figure out how to file Form 990 online for the first time on your own, you can find form instructions and <a class="link" href="https://www.irs.gov/e-file-providers/exempt-organizations-and-other-tax-exempt-entities-modernized-e-file-mef-providers" target="_blank" rel="noreferrer noopener">e-filing guidance for tax-exempt entities</a> through the IRS. You simply need to complete your 990 and file it online through the IRS platform.&nbsp;&nbsp;</p><h3>Hire an Accountant to Help with Nonprofit Taxes&nbsp;</h3><p>The number of steps and forms for nonprofits to complete is few, but the process can still be complex. If you make mistakes in your recording and reporting, your tax-exempt status could be at risk.&nbsp;</p><p>Consider working with a tax professional the first time you have to complete and file your nonprofit tax return. Nonprofit taxes don’t have to be a headache, and an accountant can help the whole process go much smoother. Count on the experts at 1-800Accountant to guide you through your <a class="link" href="https://1800accountant.com/services/industry/nonprofit">nonprofit small business taxes</a>.&nbsp;</p>

Tax law is complicated, especially for businesses, and there is no shortage of challenges and pitfalls business owners can run into if they’re not prepared. Nonprofit taxes and operations come with their own unique set of challenges as well.&nbsp; The IRS regulates nonprofit organizations in the United States with very precise tax regulations. The rules [&hellip;]

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Non-profit Taxes: A Helpful Guide to Tax Compliance

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