Things You Should Know Before Tax Time
We all have some gigs to make ends meet or to build a rainy day fund. The main motive of running a small business apart from a day job is to survive well. The second job brings in extra income without leaving the current job. However, the second job or side gig should be reported for the tax as IRS considers this ‘other income’. But if you give considerable time to the work, you are self-employed according to IRS. You need to file tax for returns. This will help you to enable the work a legal presence and obtain various lucrative tax advantages. If you are planning to do a side gig, it is the best time to start with the tax season!
Applying for EIN:
The first thing to start with your work is applying for an Employee Identification Number. If you want to represent your side job as a business without using your social security or the TIN, you are free to apply for EIN from the IRS. This is the number to be used for W-9 form and will go on business’s tax return.
Keep Good Records:
If you want to be able for the deduction of expense from your side job or if you want to show that the income is accurate, you will need to have good records. You will need to balance factual information that represents your organization. Record the income, compare it with final reports and 1099 forms you received in year’s end. Keep the receipts of the expenses of your side job. These need to be deducted against the income. Drake tax software– for all kinds of business- can help you to keep your records clear. The software can help you know that which expense you should apply for the business to get every deduction you deserve. The software lets you to keep track on expenses, mileage, and capture receipt to dramatically simplify your work.
Use Tax Software:
There is no deny that the tax related to your business may have some differences than others. So, if your side job or business has an accurate picture to show to IRS, you are free to file a separate tax return. To minimize your worries and get your work done, rely on efficient accounting software like drake tax. The software will help you to know crucial tax elements and file the tax without paying a huge to any tax professionals. Besides, the software makes a viable investment for the business that cost nothing for you.
This is all you can do to make your business run smoothly and remove the hurdles come on your way. You can make a wise decision by choosing drake tax that fit in your needs. However, you will need a reliable and capable drake tax software hosting services to provide you full control over the activities and tools. The hosting services bring you the real potential of using the software. Do a research over the internet or contact Techarex Networks for any queries related to drake tax cloud hosting services , prices, support or more.
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