Ah….the dreaded Schedule C of the Income tax form. How much can you get away with claiming as a business expense?
Disclaimer: I am not a CPA, employee of the IRS, professional bookkeeper, tax preparer, accountant or attorney. I do my own taxes and I have spoken to several CPAs on the subject.
- Did you hire someone to create your logo? Help you with copy?
- Did you hire someone to build your website?
- Did you pay for a booth space at a craft show?
- Did you pay someone to help you pack boxes during Christmas?
- Did you purchase books or magazines devoted to your craft, such as a crocheting magazine?
These are all expenses you can add to your taxes. You can add postage – both for sending out orders and receiving materials.
You can charge mileage for travel to and from craft shows and delivering orders to customers.
If you hire a business coach – you can include that. If you attend a seminar to help you improve your business – that gets included.
Etsy and Paypal fees can also be included. Email subscription costs, Google Advertising, Facebook advertising.
Utility costs such as cell phones and internet services are also business expenses.
Even packing paper and packing tape.
A lot of things you wouldn’t think about could be a deduction on your taxes. If you have a question – ask a tax professional. HR Block has a forum section on their website where you can ask questions.
The important thing, though, when you are itemizing these deductions – save your receipts! There is software you can purchase (and use as a deduction) to scan your receipts. You can put them all in a file box (organized – not shoved in).
So – question for the audience – what do you use as a tax deduction for your business?
Until next time –