Traverse City, MI -- (SBWIRE) -- 01/07/2016 -- The article, "Self Employed Tax Deduction Tips for 2016", is now available on Nationaltaxreports.com. Penned by tax specialist and author Frank Ellis, it discusses the excitement and responsibilities of working for oneself. Several different tax advantages are included along with their benefits to those who follow the guidelines.
The author reveals that anyone who has a business, with records of their expenses and payments, and all of their records organized, can have tax benefits. This is important for filing taxes and passing an audit if there is one. Ellis says there are business deductions for home offices, business vehicles, or supplies labeled as "deductible expenses" by the IRS. They are ordinary expenses and can make a big difference in federal tax liability.
In addition, the article covers the topic of paying quarterly estimated taxes. This is to ensure social security and Medicare taxes are paid and one is not penalized or has to pay interest.
Ellis also recommends having separate personal and business accounts, which will make filing taxes easier. Health insurance and retirement benefits are also mentioned. Insurance and medical payments can be deducted as business expenses which can save money. The IRS has specific rules in regards to this type of deduction.
The author also says that to maximize profits, it's important to keep tax liability low. He recommends talking with a tax professional, particularly about lowering taxable income. Also mentioned is filing taxes with H&R Block so there's no guesswork and all answers are automatically put into 1040 tax forms.
To read about self-employment tax tips in much more detail, go to http://nationaltaxreports.com/self-employed-tax-tips/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
National Tax Reports
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