But if the fees you pay for their services exceed $600, you’ll need to issue Form 1099-NEC. You can pay these workers as independent contractors. This not only creates a casual business relationship but it also avoids the need to pay payroll taxes. If so, you can hire people on a contract basis. This may be for either short periods of time, like your busy season, or for special projects. More than likely, you’ll hire help on an as-needed basis. Paying Employees or Outside Contractors and Servicesīeing self-employed, many wedding planners can’t afford the ongoing cost of maintaining permanent employees. Your expense information can then be exported to your TurboTax Self-Employed tax return eliminating data entry. QuickBooks Self-Employed allows you to capture your receipts by snapping a picture of your receipts on your phone and saves the information which is matched to your expenses. You can also deduct 50% of the cost of any meals you have with business clients (that you pay for), but make sure you keep your receipts, that list the client and the purpose of the meal. That includes airfare, ground transportation and hotel accommodations. If so, your travel costs will be fully tax deductible. You may have certain clients or events that require you to travel to remote locations. Travel and Meals Related to Your Business Under IRS regulations, you can deduct equipment for up to $1,160,020 in 2023. That’s where you can claim the entire expense for equipment purchased in the year of acquisition. The other alternative is to use what’s known as Section 179 depreciation. For example, if you purchase a computer, you can spread the cost out over several years, taking a percentage of the depreciation expense in each year. There are two ways you can claim the expense. The cost of these items and other types of equipment needed to run your business are tax deductible. Business EquipmentĪt a minimum, you’re likely to purchase a computer and a smartphone for your business. Those expenses are tax deductible.Įven if you’re reimbursed by your client for the expenses, you’ll still declare both – the reimbursement as income and the items you paid out-of-pocket as expenses. For example, you may pay for the centerpieces on the tables. There may be certain events where you will be paying for certain supplies or services out-of-pocket. Flyers or brochures you’ve created to market your services in certain venuesĭocument any expenses you incur for your business and keep receipts since it all may be tax deductible.Expenses incurred in connection with maintaining a wedding planning website.Direct advertising costs, like newspaper and magazine ads.There’s a long list of potential expenses here (use this list to start): Much like any business owner, you’ll have certain expenses for marketing and advertising. QuickBooks Self-Employed will help you easily track your mileage year-round, and that information can be exported to your TurboTax Self-Employed tax return at tax time. If your business mileage is 10,000 for the year, you’ll be able to deduct $6,550, which can be a huge tax saving. You can then claim 65.5 cents per mile for 2023. Keep track of your business miles during the course of the year. Transportationĭrive to meet with clients or drive your clients around to see venues, meet contractors, and otherwise conduct business? You can deduct the business percentage of your total car costs, even if you use the car for personal reasons as well.įor example, total up the cost of car insurance, gasoline, repairs, maintenance, and interest on financing - if the business use of your car based on mileage is 70% of the total mileage driven for the year, you can deduct 70% of your auto expenses against your business income.Īlternatively, you can use the IRS standard mileage method. If you work from home and you have a dedicated office, you can take the home office deduction and deduct the expenses incurred in maintaining your home based on the percentage of the home that’s used for business purposes. These include rent paid, utilities, internet services, insurance, and office equipment. Whether you rent office space in a remote building or work from home, you can deduct the expenses related to maintaining your place of business. Below, we’ve shared seven tax deductions you don’t want to miss if you are a wedding planner. Wedding planners are in a unique business, which means you’ll have business expenses specific to the work you do which can lower your taxable income.
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