The past year has been a crazy one. Many people have been laid off, worked reduced hours, or have transitioned to working from home. In the first two cases, taxes are still as straightforward as they have been in the past. But if you’ve suddenly been thrust into the position of working from home, then you may be wondering how it affects your taxes.
A good feature of any accountant is being able to advise his or her client on what can be deducted from their taxes. They should be able to pay taxes on behalf of their client as well.
Another option is to do the research yourself and figure out what can be deducted from your taxes. This can be a time-consuming process and possibly even confusing depending on your experience. You may even miss a few things that can help reduce what you owe or get you a higher refund. Home office tax deductions are some of the first ones you should take a look at.
Additionally, research your country’s tax laws because according to MarketWatch, the USA has suspended some tax breaks for home offices unless you are self-employed.
Considering all of this, you can see that hiring an accountant, who knows the in and outs of tax law, can be a wise financial decision. Yes, accountants cost money, but as you will see on the list below, they are potentially tax-deductible.
Here’s a list of what you may be able to deduct in order to reduce your taxes:
- Office rent
- Equipment and furniture for office
- Gas and electric for space
- Office supplies
- Phone bill
- Internet bill
- Business meals
- Business entertainment
- Legal and professional fees include graphic designers, accountants, and others
- Bank fees
- Printing and photocopying work material
- Mail such as postage and shipping
- Advertising to include business cards, a website, paid social media
- Online seller fees
- Any software and apps used in your business
- Any membership to professional organizations
- Fees, materials, and travel involved with conferences
- Workshops and training
- Health Insurance
In conclusion, taxes can already be difficult to figure out under normal circumstances. Do your research first. Consulting an accountant is a financial benefit to you, giving you all the deductions you deserve. Remember that tax deductions aren’t the only thing an accountant can help with. You may even be eligible for tax credits.