Are you a lawyer who is working either freelance or as a one-person business? Taxes can easily become complicated business, whether you’re a car injury lawyer or an immigration lawyer, so know that you’re not alone if the whole process leaves you a little intimidated, that’s normal because you want to make sure to get this right the first time through.
During this new tax season there are a few things to keep in mind while filing your returns for the first time to help make this process as easy as possible. Here are some invaluable professional tax tips.
Deduct everything that you possibly can. If you’ve just set up your business you have the advantage of being able to deduct all of your new office expenses such as desks, any building repair, and more. In addition to this, you’re able to deduct such things as airfare and other travel expenses like hotel stays and conference fees et cetera. Deductions are the way to a better tax year.
Small Business Grants Or Bonuses
While not always an option, see what potentials are available to you this tax season by researching if you qualify for any small business grants to help with the costs of your new law office. They may be offered by the government, or perhaps even your local community.
Keep Your Funds Separate
It’s easy to blend personal and business expenses when you’re just working for yourself and there is no overhead to keep you from using the corporate or personal credit card for a purchase, no matter how inexpensive it may be. From an organizational perspective, it’s vital to keep separate bank accounts for your business and your personal self to help you decipher what is what because you’re going to have to file two returns: personal and business. Keep this in mind for the coming tax year.
Hire A Tax Pro Or Use A Trusted Software
Don’t try to do your taxes all by yourself. The world has changed. If you don’t want to use a tax professional you can still use a software such as TurboTax or the software the IRS provides, which are incredibly affordable. The softwares are great at making sure you don’t miss a step or make a costly mistake and will help you to file quickly with minimal headache.
You Must Pay The Full Tax
When you work for an employer, you do not pay the full federal tax, you only pay half and your employer pays the rest. While you’re self employed, you need to pay the full 15.3% tax. Keep this in mind so you’re not shocked at the figure when you pay off your personal taxes. This is more applicable to freelance lawyers.
Limit the tax season headaches by following these tips on how to file your taxes efficiently and pain-free.