Home Business Ideas and Opportunities

Tag Archives | self-employment

Making Money at Home

It can actually be great fun to have a home business. Not just the actions that you might take, but also making money is really nice. Particularly if it is extra money that is not already spoken for in your budget! It really makes it your money! Depending on your situation you can just have fun with the money, you can save it, or pay cash for something you want to buy!

make money at home

Your home costs you a big chunk of your money every month – for rent, for utilities, for maintenance, taxes, etc. When you have a home business officially and itemize your deductions when you file your taxes, you can actually get some of that money back. When you file ‘use of your home for business’, you can deduct a percentage of the expenses to run your home.

As well there are other expenses you may deduct that other ‘self-employed’ people enjoy, even If you also have a full-time job and pay taxes there. There are a lot of ‘ifs, ands, or buts’ always to any regulations, so be sure to read the IRS website every year about self-employment to be sure you don’t miss anything you could be deducting because you have at least a part-time home business.

Aside from the serious business of making money at home, it just seems so productive to be using your ‘spare’ time to do something entirely constructive like running a business. It beats being a ‘couch potato’, which one would think would become very depressing after a while. Unhealthy on many levels actually.

It’s true we do need some relaxation time on a daily basis, but if you limit that you will have time for making money even while you are watching TV and visiting with the family. That is if you can ‘multi-task’ and work on your PC at the same time. With a little practice it should become second nature. In the beginning there are more things to learn and closer attention must be paid. However, once you have it all set up and running, then it will be easier.

You can always use a little extra money and in this day and age you actually should have a contingency plan that includes money so that you and your family can still survive no matter what happens as far as so-called ‘Mother Nature’ or etc. You never know from day to day what tomorrow will bring. It is best to be prepared in any case. You might as well have fun doing it!

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Preparing Your Business for the New Year

Part of the preparation for the new year, of course is to close out the old year first. Especially for tax purposes you should be as organized as you can about everything. Even though taxes are not due until April the year actually ends December 31 and begins anew January 1. Don’t get caught off-guard with the April 15 deadline looming and then start scrambling around to find things.

pay the piper!

Particularly since we are talking about possible tax deductions that you can claim for your business expenses, that might make it seem a little bit more palatable to keep track of your expenditures as well as your income. You absolutely want to be able to document every penny you claim in case of an audit. They may be rare but they are always possible when you are self-employed and it will take you many years to live it down if you fail an audit.

It really helps to print out the previous year’s monthly bank statements and highlight any business expenses incurred, as well as payment processors such as Paypal.com and other places where your expenses are documented. Don’t have the denial attitude that you probably will never get audited and you will worry about it when and if it ever happens. You don’t have any idea when it will happen if it ever does and that is a real good reason you always want to be prepared.

You are responsible to keep your financial records for 7-years and you may as well have a folder for your taxes that can be prepared as part of filing your taxes each year. When you have your own business it really may be best to have your taxes done professionally as there are many forms that you need to fill out so that you get for example deductions for use of your home for business. You don’t want to miss anything in this regard just as you don’t want to miss reporting income that may come back to bite you someday.

Keep all paper receipts or printouts when you make purchases of equipment or office supplies, monthly affiliate program membership dues. and invoices for technical support, etc. These are all deductible for a business. It is actually a good idea to have a folder for tax receipts that you keep all year long and just drop things in it as they come in.

A lot of people don’t seem to know that you can file taxes for your business and claim deductions even if you have not made a profit yet. You can do this for a few years but then if you don’t make any money they will deem your business a ‘hobby’ and you won’t be able to deduct expenses anymore. (so one more reason to try as hard as you can to generate a profit with your business!)

p.s. be sure to check the IRS website for any changes or forms each year as well as your state’s tax website. Be sure your tax preparer is familiar with self-employment taxes.

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Home Business Ideas and Opportunities

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