Frequently Asked Questions
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I started my own business; can I deduct my home office expenses?
I started my own business; can I deduct my home office expenses?
Feel free to ask us anything!
I started my own business; can I deduct my home office expenses?
I started my own business; can I deduct my home office expenses?
I started my own business; can I deduct my home office expenses?
Many entrepreneurs are reluctant to write off the business use of their home for fear of being audited. But home office expenses are legitimate tax deductions you shouldn’t miss out on. Keep in mind the space you claim as a home office should be used exclusively and regularly for that purpose. Don’t forget to include the square footage of your home office used for product storage or inventory.
Can I file a 2020 return if I haven't filed my2019 return yet?
Can I file a 2020 return if I haven't filed my2019 return yet?
Can I file a 2020 return if I haven't filed my2019 return yet?
There's no law or rule that says you have to file your 2019 return before you can do your 2020 return.
However, it's best to prepare your 2019 return first, if possible. This gives you several advantages:
- You'll be able transfer your 2019 data to your 2020 return, which saves time and prevents data entry errors.
- You'll have the answers to c
There's no law or rule that says you have to file your 2019 return before you can do your 2020 return.
However, it's best to prepare your 2019 return first, if possible. This gives you several advantages:
- You'll be able transfer your 2019 data to your 2020 return, which saves time and prevents data entry errors.
- You'll have the answers to certain program questions that involve last year's return (and you'll avoid having to amend your return if you answered them incorrectly).
- You'll be able to use the AGI method to electronically sign your 2020 return so you can e-file it.
If you're not able to file your 2019 return before filing your 2020 taxes, that's OK. Just be sure to review your 2020 return after you've filed 2019. Should your 2020 return need corrections based on info in your 2019 return, you may need to amend.
Who is Subject to Estimated Taxes?
Can I file a 2020 return if I haven't filed my2019 return yet?
Can I file a 2020 return if I haven't filed my2019 return yet?
In the United States, we have a “pay as you go” tax system. That means that the government expects to receive most of your taxes throughout the year. Because of this, employees have a certain amount of taxes automatically withheld from their paychecks.
On the other hand, if you are self-employed as a freelancer, contractor or home-based e
In the United States, we have a “pay as you go” tax system. That means that the government expects to receive most of your taxes throughout the year. Because of this, employees have a certain amount of taxes automatically withheld from their paychecks.
On the other hand, if you are self-employed as a freelancer, contractor or home-based entrepreneur, you most likely don’t have taxes withheld from your pay throughout the year and are instead subject to quarterly estimated taxes. In general, you are expected to pay estimated taxes if you expect to owe $1,000 or more annually for your taxes.
Quarterly estimated taxes are typically due in April, June, September and January of the following year for the last quarterly installment, although this year’s April and June quarterly estimated tax deadlines for tax year 2020 were extended.
If you earn your self-employment income unevenly during the year, you may be able to use an annualized installment method at tax time and avoid a tax penalty for not paying estimated taxes every quarter due to fluctuating income.