Common Taxation Advice for Going It Alone

If you will be filing on your own this year, you will receive a lot of taxation advice from a number of sources. Some of these sources will be accurate, some will be based on accuracy and some will be outright false. Sort through the common taxation advice with a careful lens.

"You Can Deduct This"

You can only deduct expenses that were specifically and explicitly used for business. If you are deducting your car insurance, for example, you can only deduct a portion that is equivalent to the amount of your car uses that pertained strictly to business.

"You Do Not Need the Receipt"

You need the receipt for every deduction. If you do not have a receipt, try to track down a credit card receipt. Make copies of all receipts to protect yourself in the case of an audit.

"Estimates are Okay"

You cannot estimate your figures for taxes and survive an audit. You may get by okay in the short run, but if a tax investigator begins to comb over your file, you need exact accounts of every single piece of income, expense or other tax consideration. Protect yourself by always using exact calculations you can back up with hard evidence.