This year, it is a good idea to get your taxes filed by April 15th and not file for an extension. The IRS will start mailing the stimulus payments (as much as $600 per taxpayer) in May, but you will not get your payment until after filing your 2007 tax return.
Do not rush through your tax return, though. Make sure you claim every legitimate deduction so you do not overpay your taxes. As an independent contractor, you can deduct the reasonable and necessary costs of doing business when calculating your mystery shopping profits. These deductions are taken on the Schedule C you file with your 1040.
Remember that if you do not use something exclusively for business, you may only deduct the business portion. For example, if you use your computer 40% for business and 60% for personal and family purposes, you may deduct 40% of the expenses related to the computer.
Here are some of the deductions you may be able to take, and what to do if you missed any deductions on a return you have already filed (even in a past year): …continue reading Secret Shopper Tax Deductions
Next week there are two important tax deadlines: April 15th is the deadline for filing your annual Federal income tax return. And, if you pay quarterly estimated income taxes, remember that your first-quarter estimated tax payment (using form 1040-ES) for 2008 is also due on April 15, 2008.