Even though it's the middle of August, it's not too early to begin planning for how you will file this year's income taxes. Jeff Christman, at Home Biz Chat has a helpful post on choosing a tax service.
In addition to Jeff's tips, here are some things that you should already be doing to prepare for taxes if you live in the United States:
- Save records of all business expenses. This includes receipts for materials and equipment purchased as well as dinners spent entertaining clients.
- Keep records of all payments received. Don't assume that your client will automatically send you a Form 1099 just because they are required to.
- Keep records of all payments that you make to others so that you can send Form 1099s to them.
- Save receipts for the cost of any legal or tax advice that you receive.
- If you make quarterly estimated tax payments, keep a record of your payments.
- If you use your vehicle for business purposes, make sure that you have a record of miles driven.
What about you? Are you keeping track? Leave a comment and let us know.
If you operate your home business outside of the United States (as I know that some of you do) leave a comment and let us know how you prepare for taxes.
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