Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
First congrats on a great first year.
To lower your taxatipon
Thank you I appreciate that
You really need to get all your expenses together
these will lower the Net and Net is what you will pay tax on for fed and state
Even if i'm not an LLC I can still write off my expenses?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
Hmm okay interesting
thank goodness I have email receipts for everything
As you work from home that is your office too
there is a deduction for that
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.
Do you have a ballpark guess as to what percentage I'm looking at paying?
That is going to depend on how much you can get rid of
I can give you the chart for tax rates
until you know what you can subtract you cannot see what rate you are in
You also have Self Employment tax
Let me get you the tax rates
i think my best bet will be to hire a local accountant so they can help me manage my write offs
The first year that is important
after that you should be able to see how it works
Your income will be on Schedule C
Sorry that did not come over well
I am having to use FireFox today and formatting is terrible
Try this link instead
You would look to either married joint or single (unless you claim Head of household)
Can I help you with any thing else on about your business?
Let's just say I didn't write off anything
what would my tax rate be?
Are you single
yes i am
You would be in the 28%
Michigan State Income Tax rate increased from 3.9% to 4.35%
You really need to reduce your income by the expenses allowed.
28% would hurt
well thank you for your help
You are most welcome
Your positive rating is always thanks enough
Please ask for me again when you come back