You may be working on your taxes right now, and hoping that you remember all of your income and expenses from last year. Keeping good records of income and expenses will make it easier to file your taxes next year and ensure that you do not miss any tax deductions to which you are entitled. Even more importantly, knowing where your money is coming from—-and where it is going—-will show you how profitable you are and which of your activities are most profitable.
Here are some ways to get your records organized.
Continue Reading
Most people are familiar with how income taxes work when you are an employee. Your employer issues paychecks to you showing your gross wages or salary, the amounts deducted for Federal Income Tax, Social Security tax, Medicare tax, and any state or local taxes. You receive the net amount of your wages less the amount withheld for taxes. Each year you file a tax return where your actual tax is calculated, and you pay any additional tax owed or get a refund if too much was withheld from your paychecks.
If you pay quarterly estimated income taxes, remember that your fourth-quarter estimated tax payment (using form 1040-ES) for 2009 is due on January 15, 2010. You may delay making this payment until February 1, 2010, if you file your 2009 return (Form 1040) and pay any tax due by February 1, 2010.
As independent contractors, mystery shoppers get to deduct reasonable and necessary business expenses. That can mean anything from pens and notepads to ink and toner, cell phones, computers and other supplies and equipment. Tax deductions can also include educational expenses, such as books and courses.