Common Tax Deductions for Construction Workers

Regardless of your trade in the construction industry, allowable tax deductions can lower your tax liability and possibly lead to getting a tax refund. You can deduct common expenses such as tools and materials, and even certain other items that come in handy in your business or on the job. 

If you’re an employee for a construction company, rather than an independent contractor, and your employer doesn’t reimburse you for expenses on the job, your unreimbursed employee expenses are no longer deductible. Independent contractors generally have no limit on the ability to deduct work related expenses. See the full TurboTax article for details so you can plan ahead.

Top 4 Red Flags That Trigger an IRS Audit

Certain red flags in a tax return are sure to draw scrutiny by the IRS. Some are easy to sidestep. Others, can’t be helped. These include:

1. Not reporting all of your income 
   
2. Breaking the rules on foreign accounts
   
3. Blurring the lines on business expenses
   
4. Earning more than $200,000
   

To find out more, read the full TurboTax article.

Tax Tips for Bloggers

Blogging is a relatively new profession, but it’s covered by the same tax laws that apply to many other occupations. The main danger from a tax perspective is that, as a self-employed blogger, your taxes won’t be automatically withheld from your earnings, as is typical with traditional employees. Additionally, you’ll owe self-employment taxes that most employees don’t pay. However, you may be able to take advantage of certain deductions to reduce your tax bill. See the full TurboTax article for details.

Filing Taxes for On-Demand Food Delivery Drivers

Attractive pay with a side of flexibility makes on-demand food delivery an ideal way to put extra cash in your pocket. Like most other income you earn, the money you make delivering food to hungry folks via mobile apps such as — UberEATS, Postmates and DoorDash—is subject to taxes. To find out what to put on your tax return, see the full TurboTax article.

Reporting Self-Employment Business Income and Deductions

Self-employed taxpayers report their business income and expenses on Schedule C. Schedule C can seem daunting, but filing will be easier if you plan ahead and keep good records. In the full TurboTax article, we’ve broken down the form into sections, so you can see what the IRS expects from you and what records you’ll need at tax time.

A Tax Guide for Solopreneurs: Self-Employed Tax Tips

Flying solo can be the ultimate business adventure. When you run your own business and you’re the only employee, you truly hold all the cards and earn the freedom to achieve your ideal work-life balance. Working for yourself also brings tax advantages not available to those who work for others. It’s important to understand the tax rules that apply to the self-employed to profit the most from these. To find out more, see the full TurboTax article.

How Long Do Federal and State Tax Returns Need to Be Kept?

Dropping a tax check in the mail doesn’t mean you can then throw out the paperwork. If the IRS or state government questions your deductions or business losses, you may need a copy of your return—not to mention W-2s and other documentation—to prove your return was accurate. However, there are limits to how far back the government can look. To find out more, see the full TurboTax article.

Selling on Etsy & Your Taxes

Selling your kid’s old bicycle is not likely to cause any tax consequences, but when you sell crafts, vintage or specialty items on websites like Etsy, you must report and pay taxes on your net income. You will also likely need to pay self-employment tax on your profits, and in some locations, you may also be responsible for charging and collecting sales tax. To find out more about selling on Etsy, see the full TurboTax article.

A Tax Cheat Sheet for Kindle eBook Self-Publishing

You’ve done it. After months—maybe even years—of dedication and an encounter or two with writer’s block, you’ve finished your eBook. You’ve heard that self-publishing for Amazon’s Kindle is a breeze, so you go to their website and click “submit.” Within a day or so, your eBook is available for purchase. Just like the self-publishing process, reporting eBook profits to the IRS is just as simple if you know what to do. To find out more, see the full TurboTax article.

Can Cellphone Expenses Be Tax Deductible with a Business?

Cellphones have become just as vital to business as a land line, which makes cellphone use a legitimate, deductible business expense. But for most of us, cellphones are also inextricably linked to our personal lives, so it’s a deduction that the IRS scrutinizes very carefully to make sure personal electronics use isn’t being claimed as a business expense. To find out more about deducting cellphone use on your tax return, see the full TurboTax article.

Tips for Paying Estimated Taxes

Many people experience career changes and significant income swings. Often, this meant facing unfamiliar federal income tax requirements, like estimated taxes, which can confuse the newly self-employed. For a few tips to help you avoid mistakes that result in penalties and interest, see this helpful TurboTax article.

Myths About Quarterly Taxes for the 1099 Tax Form

For those Americans who pay quarterly taxes—or those who don’t but who think they should—understanding the rules governing estimated taxes is vital. See the full TurboTax article to learn about some of the myths surrounding quarterly tax payments and IRS Form 1099-MISC.  

A Guide to Paying Quarterly Taxes

As a small business owner or freelancer, you’ll find that mastering your quarterly taxes is a key part of running a successful company. If you’ve come from a corporate or employee background, this may require a shift in your mindset, since you probably think of taxes as something you do once a year. But the good news is that paying taxes quarterly allows you to spread your tax responsibilities over the year and avoid a disruption to your cash flow come tax time. To find out how quarterly taxes work and what you need to know when filing your tax returns, see the full TurboTax article.

Deducting Health Insurance Premiums If You’re Self-Employed

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents. This health insurance write-off is entered on page 1 of Form 1040, which means you benefit whether or not you itemize your deductions. For details, see the full TurboTax article.

Maximizing Tax Deductions for the Business Use of Your Car

The business use of your car usually is the largest tax deduction you can take to reduce your business income. This is a big, big deal. Why two “bigs”? Because your business income is used to calculate two taxes: your personal income tax and your self-employment tax (the amount you pay into Social Security and Medicare as the “owner” of your rideshare business). Maximizing your deduction for the business use of your car will help you minimize these taxes. To find out more, see the full TurboTax article.