Are you considering a work at home computer job? But how will you handle taxes with self-employment? Below are a few tips and some legal information about taxes that you might find useful as you take a work at home computer job.
Work at Home Computer Job Tip 1: Record Everything
This should be rule no. 1. Keep all records of everything, from receipts to old bills, credit card statements, etc. etc. You never know when you’re going to need it. Of course, you are probably doing this already but just to make things clear-cut: it is so easy to lose track of receipts, bills, and other information that you might need in the future.
Work at Home Computer Job Tip 2: Don’t Throw Anything
This is just related to the first tip of keeping tabs of everything. However, the most important in handling taxes with a work at home computer job is to never throw out anything that has to do with business. Whether they are paper works for utilities, homeowner’s insurance, property taxes, office supplies, and equipment you need to keep every single receipt so if problems arise in your taxes in the future, you’ll have a way to trace them back or confirm them through your records.
Work at Home Computer Job Tip 3: Organize
We are sure that you don’t want your house to be just one big filing cabinet. As you work at your work at home computer job, you don’t want to get a headache trying to figure out where to work since your working table is strewn with all sorts of records. Get your files organized from the beginning. One way to do this is to take care of things the moment they come in. Sort out the ones that you will need to keep and store them neatly in an old shoebox or a drawer in your desk. The rest belong to the trash bag.
Work at Home Computer Job Tip 4: Clean your Office
There are many added benefits to having only a home office tax. However, there are requirements for it. To make sure that you are eligible for such, you must be able to show that the area in your home where you perform your work at home computer job really looks like an office. That is, your work at home computer job office should be used regularly and exclusively as your office and not for other things. This further means that if your work at home computer job office also serves as the family room, you won’t qualify. Therefore, make sure that you have a room in your house that you can call your office.
Work at Home Computer Job Tip 5: Get a License
Let’s say for instance that your work at home computer job consists of managing a daycare facility. Home tax deductions are possible if you state that your home is used for a daycare facility. However, in order for deductions to apply, you must first get a license for your work at home computer job from your state. A license is definitely worth the extra effort; exemptions such as these can really help you out at tax time.
