http://frugalbabe.com/2007/02/06/tax-time-again/ A rich life without a lot of money Tue, 06 Jan 2009 03:16:11 +0000 http://wordpress.org/?v=abc hourly 1 http://frugalbabe.com/2007/02/06/tax-time-again/comment-page-1/#comment-749 FrugalBabe Mon, 12 Feb 2007 19:55:23 +0000 http://frugalbabe.com/2007/02/06/tax-time-again/#comment-749 I was overwhelmed with the tax process for being a 1099 contractor when we first started, but it's actually not too bad. Make sure your DH keeps track of all his expenses, and keeps receipts. It's best to track them every day or every week, all year long, so that when tax time comes around, you aren't digging through a crate full of receipts trying to sort everything out. The basic categories for expenses are advertising, office expenses, supplies, taxes, legal/professional expenses, meals and entertainment, utilities and phone, and insurance. If he's working from home, you can deduct part of the expenses for running your home (taxes, utilities, etc.) You just figure the sq footage of his home office as a percentage of the total sq footage of the house, and that's the percentage of household expenses you can deduct. I use TaxActOnline software - it's been a lifesaver. And also, it's best to keep personal and business money separate - get another bank account for business expenses/income. It'll make things easier as time goes on. Good luck! I was overwhelmed with the tax process for being a 1099 contractor when we first started, but it’s actually not too bad. Make sure your DH keeps track of all his expenses, and keeps receipts. It’s best to track them every day or every week, all year long, so that when tax time comes around, you aren’t digging through a crate full of receipts trying to sort everything out. The basic categories for expenses are advertising, office expenses, supplies, taxes, legal/professional expenses, meals and entertainment, utilities and phone, and insurance. If he’s working from home, you can deduct part of the expenses for running your home (taxes, utilities, etc.) You just figure the sq footage of his home office as a percentage of the total sq footage of the house, and that’s the percentage of household expenses you can deduct. I use TaxActOnline software - it’s been a lifesaver. And also, it’s best to keep personal and business money separate - get another bank account for business expenses/income. It’ll make things easier as time goes on. Good luck!

]]> http://frugalbabe.com/2007/02/06/tax-time-again/comment-page-1/#comment-739 Judy Sun, 11 Feb 2007 17:53:01 +0000 http://frugalbabe.com/2007/02/06/tax-time-again/#comment-739 My DH has just become a 1099 employee. It didn't matter much for the taxes I just completed as it was only $1,000 of income (just changed jobs). This year will be a different story. Can you provide any advice or maybe a website(s) to help me figure out this process? I'm not sure what all I need to be doing differently. Thank you very much. Judy My DH has just become a 1099 employee. It didn’t matter much for the taxes I just completed as it was only $1,000 of income (just changed jobs). This year will be a different story. Can you provide any advice or maybe a website(s) to help me figure out this process? I’m not sure what all I need to be doing differently. Thank you very much. Judy

]]>