Tax Breaks or Tax Mistakes

The other day I was half-listening to a radio talk show while driving to the grocery store. No big deal, right? I mean, don’t we all half-listen to radio talk shows now and then?
Then the host grabbed my attention with this statement:

“The tax laws in this country protect two classes of people – the wealthy and the self-employed.”

I decided to look into the matter a little further.

Self Employed

Many employees stay in their jobs because they feel that oftentimes it is easier to trade time for money so they can collect their paychecks, go home and leave work behind. They don’t have to worry about overhead costs and seeming hassle of self-employment.

It might seem like this on the surface.  Until you look a little closer, and discover some benefits you might not have thought about.      Tax deductions for the self-employed can add up to a substantial amount of savings. There are definite benefits you get for being the boss.

Bosses a Field Guide

One often overlooked deduction is educational expenses. If you are taking courses or buying research material to be more effective in your work, this can be deductible.

Think about any books, web courses, local college courses, or other classes or materials that you purchase to improve your job or business. It’s easy to forget a work-related webinar or business e-book that was purchased online, so remember to save e-receipts.

ebook

This also includes subscriptions to trade or professional publications and donations to business organizations, both of which are frequently necessary for the continuation and growth of your business.

Lots to think about. I’ll be back later with more tax saving tips of entrepreneurs, so until then, don’t get too taxed with the burdens of your job!