28 Mar Tax Tips For Domestic Employees

It’s hard to believe the 2017 tax season deadline is almost upon us! Here at Belle Maison Agency, we love saving as much as the next, so we’ve compiled 5 CRITICAL TAX TIPS to make sure you claim all possible tax deductions and hopefully overall maximize your 2016 tax refund.

1. Be Sure You’re An Employee Or An Independent Contractor

If you’re on your employer’s payroll and receive a steady paycheck, then you are an employee. On the other hand, you may be an independent contractor if you (the worker/service provider):

• Provide your supplies, equipment, materials, and tools (meaning all necessary materials are not supplied by your employer)
• Can be discharged at any time and can choose whether or not to come to work without fear of losing employment
• Control hours of employment hours thus indicating you’re acting as an independent contractor whether the work is temporary or permanent

2. IRS Forms To Look Out For

Staff who are considered employees typically receive a W-2 form from their employers. Oftentimes, independent contractors earning $600 or more from a client receive a 1099-Misc form. W-2s show your employer paid part of your Social Security and Medicare taxes. Self-employed staff are responsible for paying these taxes on their own

3. Report All Income

Reporting all earnings is imperative to ensure you don’t get caught up in any unnecessary financial drama

4. Multiple Clients Must

Keep in mind that you may not receive all forms (1099-Misc, W-2) necessary, so we highly recommend carefully keeping track of all earnings from each client

5. Write It Off

If you are an independent contractor, be sure to deduct all work expenses from your income. Deductible business expenses include:

• Gas or mileage used to and from or during work
• Cleaning supplies, equipment, and tools used for services
• Cost and maintenance of uniforms, aprons, shoes, etc. used on the job
• Insurance, bonding, or licensing fees you pay to a trade organization or insurer