As a freelancer, I understand the challenges that come with managing your own taxes. But fear not, with the right knowledge and tools, it’s easier than you think. Let’s dive into some tax planning tips from Working Today Inc.
Organizing Tax Records
Keeping your tax records organized is crucial. It not only makes tax filing easier but also helps you keep track of your income and expenses. Here are some tips:
- Keep a separate business account
- Use a bookkeeping software
- Save all receipts and invoices
Understanding Adjusted Gross Income
Your adjusted gross income (AGI) is your total income minus certain deductions. Understanding your AGI can help you determine your tax bracket and your eligibility for certain tax credits. Learn more about AGI here.