Original Article Written by Lynn Richardson for Global Grind…
It’s that time of year again — tax season — and depending on how well you are informed and how well you keep records, this can bring anxiety if you owe money to the IRS or joy if you are getting money back. In either case, your current tax situation can be enhanced if you arm yourself with information, so read on to determine if any of the following tax deductions apply to you.
If you run a home based business with the intent of making a profit, there are over 440 tax deductions available to you that you can itemize on Schedule C of your 1040 tax return. Note that you do not have to actually make a profit, instead, you must have the intent on making a profit and your activity must not simply be a hobby. The following are a few common home-based business expenses that you may be able to itemize to reduce your income and ultimately, to reduce the amount of taxes you owe to the IRS. Please contact your CPA, tax professional, or the IRS to determine if any information herein applies to you.
1. Mileage, gasoline, loan interest, and other automobile expenses: The key here is to track your all of your mileage (so you can differentiate between personal and business use of your automobile) AND keep all of your receipts to determine if you will get the mileage deduction or the expense deduction.
2. Cell phone, monthly cell phone service, internet and modems, and other electronic communication gadgets that are used for business can be itemized on your Schedule C.
3. When you travel for business, you can write off your transportation, lodging, meals, business related training and registration fees, and dry-cleaning expenses. It’s okay to have fun when you travel for business (visit family, amusement parks, etc.), as long as your initial intent is for business.
4. Meals that take place while discussing business including dinner parties that you host: you must document who, what you discussed, when, where (name of the restaurant) and how much you spent. All of this information can be written on the back of your receipt for easy remembrance during tax time.
Managing your tax deductible expenses is hard work, but so is being broke! Choose which work you are going to do, be a good steward over your resources, and get as much money back as you legitimately can during tax season.
Hello beautiful people/ super sheroes and heroes! Thank you Lynn for returning to WVON, you are love for being obedient and helping the masses like myself. Back when there was Curtis Monday, Atty Deidre Woods-Stokes and yourself, I was excited and didn’t know where to begin. Now amid loss time, I still don’t know where to start. But I receive you all as a Clarion call from the Good Lord above to get on board and don’t let my SECOND CHANCE sail without me this time. Please help me Lynn or even forward my situations to the appropriate experts thank you.?
Situation #1: I have inherited an annuity from Mom who is still a blessing here on Earth. She started with a 25K policy which has matured over double. After 20+ years, the insurance company used some tricky practices not to take the yearly premium since 2018. We didn’t feel comfortable about this and made some inquiries only to find out that the policy has lapsed and lost some value. Now we have to complete a reinstatement form and we have the premium for the past 2 years. What we need to know is what illnesses would prohibit my 90 year old mom from being reinstated? This is time sensitive, so could you please advise?? Much love.
I know this is late, but I cannot answer questions online. Please reach out to my office if you would like to schedule a consultation: https://lynnrichardsonradio.com/financial-coaching/#//
Situation #2:Taxes. I can have an Home based business as consultant/case manager for my 90 year old mother. I have been taking care of Mom since 2005. I function as Case Manager for the care givers as well. I take her to any and all appointments (hair, doctor, adult day services and the like). I handle payroll, I do the shopping, cooking and pay all bills. I make the engine run. Mom is a client of Illinois Dept of rehabilitation svcs ( DORS). She has suffered a traumatic brain injury (stroke). I have all receipts and I do not live with her. Please advise me how to get my money back. Thank you?
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Why Start a Home Based Business?
Because the government LOVES self-employed business owners and shows that love by providing over 475 tax deductions you could be eligible for (like hiring your kids in your homebased business and getting a tax writeoff of up to $12,000 per child).
You must do three things if you want to build wealth:
1. Spend Less Money: live below your means, pay off debt, etc . . .
2. Get More Money: wise investments, multiple income streams, find your purpose, do what you love, and the money will follow!
3. And, most importantly . . . GET YOUR MONEY BACK! If you want to get your money back when it’s time to file taxes, you must LEARN how to run your business like a business AND document EVERYTHING.
Situation #3: Multiple Income Streams. 20 years ago, I assisted my 3 great nieces in writing some award winning books under a Chicago Public School (CPS) project called Young Authors. Because they all have won awards, I have urged them over the years to publish these books. and start something financially rewarding for themselves. Well, you the story. These ladies are now college grads, wives and professional folks with no interest in grade school memoirs. These are great children’s books with lasting moral lessons and messages that I would like to see come to life as the moral messages are really needed today. Please advise as to how to make this a reality. Thank you, much love!?
This is great! Don’t hesitate to reach out to me if you want to schedule a consultation for yourself or anyone in your family: https://lynnrichardsonradio.com/financial-coaching/#//