Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
When you're a freelancer, there's no way around it: You need an accountant. A certified professional accountant (CPA) can help you with a variety of tax and business issues.
Here are some of the most common reasons that freelancers need an accountant:
An accountant understands the ins and outs of business deductions for freelancers. As a freelancer, you can deduct almost anything related to your business — from travel and entertainment expenses to office supplies and employee benefits — from your taxable income.
An accountant understands the ins and outs of business deductions
But there are rules about what constitutes a legitimate business expense and how much you can deduct. An experienced accountant will know these rules inside out and can advise on which expenses to claim.
They can help you better understand what deductions you can claim at tax time, which can allow you to make smart spending decisions throughout the year that will allow you to maximize your deductions at tax time.
An account can help you organize bills and receipts
A good accountant will also help you organize any bills or receipts related to your work so they're easier to keep track of than
if they were just sitting in a folder somewhere. They can also help by setting up systems like accounting software or filing systems that make it easier to handle paperwork throughout the year without having too much clutter in your office space.
You need to keep your bills and receipts organized because they can help you with your deductions. Knowing your expenses can also help you make smarter business decisions.
An accountant can help you handle payroll taxes
An accountant can help you handle payroll taxes, too — something that many people don't realize is part of their responsibility as self-employed workers. Payroll taxes include Social Security, Medicare, and unemployment.
You need to pay these on a quarterly basis based on how much profit you are bringing in. Failing to pay your estimated quarterly taxes throughout the year can result in penalities and fees that will increase your tax burden at tax time, which is why you want to take care of this throughout the year.
A certified professional accountant is a worthwhile investment for freelancers who want to handle their finances in the smartest possible way. A CPA can help you make smarter business decisions throughout the year, and assist you with your yearly taxes.
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