Ideas And Tips For Taxes With Starting Your Gig Business

  1. Establish a business bank account
    • Only do you revenue and expenses from this bank account
    • After your expenses are paid then that is your profits, transfer that to a personal bank account for home expenses
    • Do not mix home expenses and business expenses
  2. If you are a two income household, maintain separate expenses from each other. This helps at end of year taxes to figure expenses easier and determine method best for deductions
  3. Pay estimated taxes during the year on a quarterly basis. Be sure to do your 1040ES on a quarterly basis.
  4. Keep every receipt as related to a business expense. For online purchases save as a pdf the receipt.
    • Records are to be maintained for minimum of 3 years from the tax year
  5. Have a bookkeeping mechanism, such as quickbooks.
    • Mileage tracking is a must.
    • Expenses tracking is also required.
    • Save yourself time and your tax preparer time by having these all done prior to tax prep time. Most will charge a bookkeeping fee if presented a stack of receipts and not just hard numbers.
    • Receipts are for the tax payers records for audit. Not the preparer.
  6. If doing multiple gigs keep each gig expenses and income separate. Certain gigs have certain expenses and multiple Schedule C may need to be prepared.