Tax season has been over for some time, but you might have felt yourself emotionally and financially drained after leaving your accountant in Chelmsford, MA for your tax appointment this year. abc Payroll doesn’t blame you, because we know owning a small business is hard! There is still time in 2016 to think of ways of how to save money, and one smart way is through tax deductions. We have a few tax deduction suggestions for you to put a little money back in your pocket when tax season rolls around next year.
1) Home offices. If you have an office in your home that’s dedicated solely to your business, a tax deduction is possible. It doesn’t have to be an entire room, but be sure to measure out the area and compare it to your home’s square footage. That percent can go towards business expenses such as electricity, heat, Wi-Fi, etc.
2) Office supplies and software. Save your receipts, because these small items matter. If you work as a freelance graphic designer and need the latest version of In-Design or have to invest in pens for your desk, you might be able to receive a little money back for these purchases.
3) Mileage. When you’re on the road quite a bit, it can take a toll on your car and wallet. Document your travels through dates, mileage, tolls, and parking for the IRS to view. In 2016, you can get back up to 54 cents per mile driven for business purposes!
4) Education. Some fields of work require you to be on top of the newest education and technology available, and you might find yourself fall into this category. Seminars, trade shows, and other resources like books related to your industry are tax deductible.
5) Employee pay and expenses. Generally, you can deduct employee pay and reimbursements such as gas, transportation, and hotel accommodations. This can be completed by keeping a plan in place that can show these expenses are businesses related, and refunds/expenses are filed correctly in the appropriate timeframe.
Whether you need help with your taxes once a year, all year, or simple need a payroll system in NH, MA or CT, abc Payroll is the business to contact. We’re a 30-year-old SOMWBA certified payroll, tax and bookkeeping company that is dedicated to personal service with personal dedication. With more questions about our services, call us today at (978) 251-3003.