How to Stop Tax Garnishment in California and Other Self-Employed Business Tips
March 22nd, 2018
As a sole proprietor, it’s important to stop tax garnishment in California and steer clear of any other type of tax problems with the government. TaxPlus offers bookkeeping services that can keep everything in order so people who run their own businesses can avoid unnecessary problems.
One of the advantages these businesses get when they use our services is a high degree of organization. Not only do our resources and forms simplify bookkeeping for the sole proprietor, we also like to offer tax advice that helps them on a daily basis.
It’s important to report all of the income that you make whether you’re a sole proprietor or even an on-demand worker. There are forms that need to be filled out for all different kinds of income including third-party providers like PayPal to stop tax garnishment . We can help you with each and every one but it’s critical to report all of your income to avoid any kind of future trouble.
Keep in mind that even these third-party providers need to submit the appropriate form if you make over a certain amount of money.
It’s good to know the government gives you a break if you’re a sole proprietor and you spend a lot of time driving to see clients. In fact, the going rate is calculated per mile for 2017. There is also a deduction if you drive for Uber or one of the other rideshare programs. It’s also a good idea to keep all the receipts for parking and or toll roads you drive on. Those are generally deductible as business expenses as well.
Put Aside Some Tax Money to Stop Tax Garnishment
One of the things that sole proprietors often forget to do is put aside some money for taxes. You need to remember that as someone running your show no one is deducting from your paycheck. If you do a few quick calculations you’ll be able to estimate your yearly net income. That will help you put aside a monthly amount in a separate account so you won’t be caught flat-footed at tax time.
Finally, you won’t want to miss your home deduction expenses if you run your business from the house. You can deduct a portion of your property taxes as well as heat and hydro-bills. It’s even possible that money for business trips can be a deduction.
Taking the time to do some research about what you can and can’t deduct will help you to stop tax garnishment in California before it starts.