Well, it’s too late to start accumulating write offs for taxes LAST year, however there is plenty of time to think about what to keep THIS year for tax purposes.
I don’t know if you will end up getting a refund of some sort or will have to pay, however the business receipts you keep can make a huge difference in the final totals on your taxes!
Keep and file ALL business related expense receipts. You’ll be amazed at how those 47 cent stamp receipts add up over a years’ time. Any fabrics/notions that you purchase for business use can be a tax deduction. Also, if you haven’t already done so, get a small pocket calendar that you can keep in the car for business miles. When you run to the fabric store for more fabric, write down the miles for that day. If you’re making a run to the post office to get some orders mailed, write down the beginning and ending odometer reading so you’ll have the miles for that trip. At the end of the year that calendar becomes part of my tax information box to keep in case it’s ever needed.
If you’re looking at a new computer, printer or other office equipment, they can be written off as well. Be sure to add in the cost of paper, printer cartridges and any other office equipment or supplies.
Ask your tax preparer about home office deductions – you could even write off part of your power bill, cable bill and telephone bill.
Take advantage of all the ways you can help yourself at tax time.
I keep an expanding file that is labeled for postage, inventory, office supplies, etc where I keep all my receipts filed during the year, then at the end of the year all I have to do is add the receipts in each category for totals to put on the tax forms.
If you’ve already set up a system for keeping receipts, bravo to you — if you haven’t already set up a filing system, it is not too late to start right now.