Just because you didn’t make a ton of money last year doesn’t mean you don’t have to file taxes by April 17th. Of course, if you only garnered a few hundreds dollars, then you might be able to skip filing with Uncle Sam, but the majority of Americans, even the ones considered “low-income,” earned enough money to warrant submitting some type of tax form. The bright side to that not-so great news is that the Internal Revenue System offers free help to low income wage earners who need assistance with their taxes. One of the mot popular is the IRS … Continue reading →

When it comes to filing taxes, documentation is key. Without solid proof to back up your figures, you risk getting into hot water with the IRS, especially if you are audited. In a previous blog, I gave you important information regarding the home office deduction. I detailed the requirements needed to qualify and listed caveats that could make or break your eligibility. It is critical that you realize that the home office deduction is available only to people who are operating legitimate businesses from their residence. Uncle Sam doesn’t tolerate people who file for the home office deduction when they … Continue reading →

In my previous post I listed the requirements you need to meet in order to qualify for the home business deduction on your 2011 tax form. Remember: You must be able to show that you use your home as your principal place of business. This can be accomplished by sanctioning off a portion of your house, condo, mobile home or apartment for business purposes only. You can’t use your workspace to host poker games or scrapbook crops on the weekends; rather, the space must be used exclusively and regularly for business. However, there are two exceptions to this rule. According … Continue reading →

Now that you know how to save money on your taxes by deducting job-hunting expenses, let’s talk home businesses. According to the IRS, you may be able to save big bucks by writing off expenses related to what Uncle Sam refers to as the “business use of your home.” If you work out of your home–regardless of whether you rent or own–you may qualify for the deduction. The IRS defines a “home” as a house, condo, apartment, and mobile home, basically, any place that includes an area where you cook and sleep. A home office can be as large as … Continue reading →