Independent contractors who want to make the most of their tax refunds need to make sure that they understand what they are entitled to.
Many people see maximizing tax refunds as a way to “get over” on the system, but this couldn’t be further from the truth. You are essentially receiving refunds on money you have already spent, so you need to make sure you take advantage of every legal opportunity.
One important opportunity to never overlook is the home office.
If you provide work from home, you will need to make sure that you claim this on your taxes for the maximum refund. Your home office is the room or section of a room in your house or apartment in which you perform all of your work.
In order to receive a refund for this, you will take a percentage of your mortgage or rent, equivalent to the size of the room in relation to the entire square footage of your home.
In order to accurately claim this, you will have to get a measurement of your office, while also understanding the exact size of your home.
By taking advantage of this tax break, you are receiving a justifiable return on your investment, since it takes money in order to fund and maintain this room.
You should make sure that this is a room that is strictly used for work, so make sure that you take inventory of the way you operate.
For questions on the home office or on other tax refunds, contact us today.
Photo by Standsome Worklifestyle on Unsplash