Home Business, Yay or Nay?

While the old American dream was once to land a steady job with good benefits and an early retirement, the updated version often entails becoming an entrepreneur and being your own boss. There are many challenges in steering your own ship, and yep many rewards as well. One advantage to working for yourself is that you know that you’ve got at least one person on board that really genuinely cares. As your own boss you can also guarantee that your opinions will be heard. But before making that big jump, you should really make sure you know what you’re getting into.

Here are some often overlooked changes you will experience…

Taxes

If you once were able to file a 1040EZ those days will soon be ones of the past. Taxes for your business will be involved, to say the least. And your personal taxes will doubtless be affected as well. Then you’ve got the cross-over items and the difficulty of trying to decide what can legitimately be itemized and for which. As an entrepreneur you will want to keep an eye on mileage costs and keep receipts for any business-related transactions.

Also be sure to check into any specific licensing or certifications you may require for your business and keep up to date on any registration renewals, if any.

Home Office?

A home office can obviously cut down on fuel costs and time spent going to and fro. Working from home can also keep you more connected with loved ones and may even get you tax breaks, if set up correctly. Though if you business is customer or client-based you may be required to have specific permits for such and to also carry extra liability insurance, should anything happen to someone on your property.

Another thing to consider is if you feel you can truly be productive while working at home. The Internet is distracting enough, what happens when you’re groggy all day and the bed is just a few feet away? Do you actually have enough space to specifically dedicate to an office? Will you and your family be able to agree on some kind of ground rules for specific hours of operation? These things and more should be considered before taking the plunge.

Insurance

As mentioned, if you have a home office you’ll most likely need extra insurance but don’t forget medical insurance and disability as well. An old 9 to 5 might have taken care of that for you but now that you’re the boss you do have to have a backup plan, should anything go wrong.

These are just a few of the I’s to dot and T’s to cross, there’s so much more. However, it’s a pretty terrific time to go into business for yourself – provided you think ahead, plan accordingly, and prepare yourself for the worst so that the worst never comes to call.

Written by Erin Nolan. Hurt yourself at someone’s business? Make a claim:¬†www.accidentclaims.org

Tax Benefits For Parents

When doing your taxes there are so many things to remember that mostly everyone forgets about tax benefits for parents. You could receive benefits for your kids. Here are some ways to see if you apply.

– As of March 29, 2010 you can reduce premiums you paid for health insurance, but that’s only if you were self employed. If your child is under 27 even if they have never been your dependent you can claim them. Meaning if you have a child you have never claimed and he or she is under the age of 27 by December 31, 2010, then you can make them one of your dependents that’s only if you paid premiums on any health insurance, and you were self employed then you can minus the premiums you paid for it.

– If you have ever been laid off work and had to hire someone like a baby sitter or a nursery and daycare center. If your kid is under 13 years of age you might be able to claim them as one of your dependents. Meaning if you got fired and you have a kid under the age of 13 and you had to hire someone to watch them as you look for work, you could claim them as a dependent.

-The EITC is a program where you could benefit from incomes you have earned from farming, wages, and self-employment. Actually it takes down the wage of tax you owe and can possibly give you a refund. Therefor certain people can get rewards for incomes they have earned.

– When you have children and they have income that comes to them by working they possibly can have to file a tax return.

-Interest from student loans. If you have a kid that is in college and you pay qualified student loans you can reduce the interest you paid.

Before doing your taxes remember to check up on things and make sure if you have kids to research all the benefits available to you. Your tax return will benefit greatly from your knowledge of child tax credits.