3 Common Problems when Filing Self-Employed Tax Returns

Filing self-employed tax returns can be challenging if you do not have any experience in the area. Throughout the process, many self-employed people run into a few common problems. Here are some of the common problems to watch out for when filing your self-employed taxes. 

1. No Receipts

When you are filing your self-employed taxes, one of the most important things to have are the receipts from your business purchases. Anything that you purchase for the operation of the business can be deducted. If you buy copy paper or office furniture or anything else for the business, you can deduct it. However, you need to make sure that you have receipts for everything or the IRS may not allow your deduction.

2. Forgetting Home Office Deduction

When you work from home, you should take advantage of the deduction that comes with having a home office. You can deduct a portion of your mortgage, insurance, utilities and other expenses associated with the office. Forgetting this is like leaving money on the table.

3. Not Utilizing Help

When you are filing your self-employment taxes, you should seek the help of an outside tax resource. Whether you hire an accountant or use tax software, using these tools can help you catch deductions that you missed. 

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