Some people will get to work their lives from a computer located within a home office. However, as April approaches, many new affiliate marketers might be wondering how they are supposed to file their taxes. Some affiliates choose to have a CPA take care of those taxes while others prepare taxes themselves with services like Quickbooks. In 2015, 87.6 percent of income taxes were e-filed while 12.4 percent were filed on paper. No matter which option is chosen, there are helpful tax tips that affiliate marketers should know. In this post, you will learn three tips when it comes time to prepare your affiliate marketing taxes.
The majority of income made through many SEO related activities is taxable, just like income from any other profession. You will likely not be receiving a refund at tax time if you are self employed. It is important that you do not go spending all of your income; you will be paying some of that back in taxes. It can be disheartening to learn that you will no longer be receiving money back at tax time. However, you also earn less taxable income throughout the year making it all even out.
Most affiliate marketers will be using a system of itemized deductions. It is imperative that an affiliate marketer finds every deduction they can, within reason. The key to having deductions to reduce what you owe is tracking deduction sources. Quickbooks is a popular program for preparing taxes and tracking deductions. Of course, these deductions must be truthful as you could be asked to provide proof by the IRS. A bookkeeper can ensure that you are properly storing tax information throughout the year, just in case you need to bring forth any documentation.
Ensure that you run all deductions by a qualified professional to ensure they apply to your specific tax situation. You never want to assume anything, especially when preparing taxes. The pages in the tax code have increased about 16 percent in the past century; always ensure you are following all updates in the tax code. Programs like Quickbooks and Turbotax are great but you will want to ensure a professional looks over your taxes.
There are many deductions that are allowed to be made for affiliate marketers. If you work from home, there is a home office deduction that applies. You simply enter the required information about where you work at home and a deducted amount is applied. Monthly bills relating to the promotion of your business, internet usage, and credit card internet are all applicable for deductions.
If the thought of tackling affiliate marketing taxes sounds a little daunting, you are not alone. It is wise to not want any discrepancies on your taxes because you are new to preparing them yourself. Trying to come up with an resolution to a rejected return during tax time by yourself is scary, especially if you aren?t aware of tax rules. An accounting team can help prepare your taxes to ensure that everything is accurate and correct. Research shows that people in the United States spend about 7.6 billion hours preparing taxes each year. An accountant ensures that you don?t have to stress when tax time rolls around.
In closing, an affiliate marketer will have different taxes to prepare when compared to most people. Many of those who work in affiliate marketing or similar businesses will owe on their taxes instead of receiving refunds. Quickbooks is a great program to help track your deductions to reduce what you owe. Online marketers are not being punished because they owe, it is because these marketers report income differently than most civilians.
Deductions are extremely important to lower the amount of taxes owed by internet marketers. A CPA can help you determine the maximum deductions you can place on your taxes. In addition, taxes rules can change, working with a CPA ensures you are aware of any new changes.