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editor   Deborah Crawford
BellaOnline's Small Office/Home Office Editor
 

Tax Tips and Resources for Small and Home Businesses

It’s tax time again. For many small and home business owners, taxes are confusing. What can you deduct, what forms do you need, should you call a professional, where are all your records????? In this article, I will share tax tips and resources to make the process a little less painful.

First, some good news: Because April 15 falls on a Saturday, the tax deadline is Monday, April 17 this year, so you have two more days!

Hopefully, you have all your records and receipts organized for the year. Keeping good records throughout the year makes taxes much easier. If not, then start gathering everything now. You need records to support your business income and expenses. The IRS has an online guide that can help you. Explore Publication 583 Starting a Business and Keeping Records. There is a lot of helpful information here on keeping records, filing returns, paying taxes and more. Even if you do not do your taxes yourself, you should at least know what is required.

The IRS Small Business, Self-employed Online Classroom has free video lessons, workshops and more to help you learn about taxes.

There are special provisions this year if you made charitable donations for Hurricane Katrina. Jeff Schnepper explains them in his article Tax Breaks for Everyone.

With tax software, many people find doing their own taxes relatively painless. I have used Tax Software for several years. The programs walk you through each step of the process and are very user-friendly. Online updates mean the program always has the most current information from the IRS, and you can either file electronically or print and mail your return. (Do print a copy for your records.) The two most popular tax software programs are Tax Cut from H&R Block, and Turbo Tax. Both are free to try online, or you can purchase either program and get bonuses and rebate offers at Amazon.com.

If you have an accountant or choose to pay a tax preparer to do your taxes, make sure they are aware of the changes in tax law. The IRS has an online resource for tax professionals, too. Make sure your tax preparer visits Tax Information for Tax Professionals for updates and special resources.

And, while you are battling away at your returns, here are some observations from some fellow taxpayers:

If the Lord loveth a cheerful giver, how he must hate the taxpayer! ~John Andrew Holmes

The taxpayer - that's someone who works for the federal government but doesn't have to take the civil service examination. ~Ronald Reagan

Today, it takes more brains and effort to make out the income-tax form than it does to make the income. ~Alfred E. Neuman

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