Incredible Income Tax Tips for the Self-Employed

Being self-employed increases the amount of record-keeping you have to do for tax purposes. However, having your own business will give you some tax breaks that your employed friends can’t get. Managing income taxes as a self-employed person can be overwhelming. Follow the tips below to make tax time less painful and take advantage of some of the tax benefits that come with working for yourself:

• Estimate your business income and determine where you stand taxwise
• Time your income near the end of the year to your advantage
• Mindfully time your expenditures
• Make the most of medical insurance deductions
• Keep the structure of your company simple, especially as a sole proprietorship
• Automate your record-keeping and sync your bank accounts
• Understand the differences between business deductions and itemized deductions
• Set aside some money for your children’s college, as this amount can be deducted from your taxable income
• Increase your self-employed retirement contributions
• Hire professionals at Agro Accounting CPA

If you can’t find the time and energy to manage your tax-related tasks, reach out to Agro Accounting CPA and get best-in-class assistance on income taxes for the self-employed.

Understanding a “CPA Letter for Verification of Self Employment”

A CPA letter for verification of self-employment is a document issued by the CPA of a loan applicant. In this document, a CPA verifies that he or she has prepared the applicant's tax return and that the applicant is self-employed. So, this letter verifies the self-employment status of the loan applicant. Usually, banks, landlords, and lenders ask the self-employed person for a CPA letter for verification of self-employment for the approval of a loan. Read this blog post to learn more about this document!

What Should the Letter Include?

The letter should be signed by the CPA, and it should be on the CPA's letterhead. In addition, it should contain the following things:

● Name of the applicant

● Business name, address, and phone number of the applicant

● Nature of business

● Number of years applicant has been in [this] business

● Percentage of ownership

● Time since the CPA has prepared tax returns for the applicant

● Applicant reviewed his/her tax returns prior to their filing by the CPA

In most cases, professionals like independent contractors, people owning a single-member LLC, and other small business, freelance, and self-employed individuals are asked for such a letter.

Things a CPA Should Consider Before Issuing the Letter

CPAs should check their professional code of conduct and ethical standards before issuing such letters. They should verify the factual information on hand and avoid forward-looking statements, projections, and opinions. Also, the CPA should not assure the credit-worthiness of the borrower. Along with that, applicants should also obtain a copy of their CPA’s letter and ensure the accuracy of the information in the letter.

If you ever need help with such letters or other accounting and tax-related tasks, you can get in touch with Agro Accounting CPA and hire accounting professionals for the self-employed. Our skilled and experienced CPAs can help make your tasks hassle-free.

How Artists can Benefit from Doing Income Taxes with Online Accounting

Online accounting or e-accounting is the application of internet technologies to the business accounting function. Everything is the same in online accounting: the entire process has simply moved online. Many well-reputed income tax service firms for the self-employed have shifted to online accounting. Have a look at the five main benefits of online accounting for artists.

1. Get Rid of Paperwork

Online accounting reduces your reliance on paperwork. It eliminates the need to print information on physical sheets, store it, and deal with a bundle of paperwork. You can access all of your information online and download digital documents by logging into your account.

2. Affordable

Online accounting companies have online platforms that allow them to directly transfer documents to their clients, which removes the costs of printing and postage. This eventually reduces the price of online accounting services and offers affordable accounting for artists.

3. Mobile Access

You can access key accounting information anytime, anywhere. Online accounting uses cloud servers to safely store data and records in encrypted form. You can easily access all your information by using your smartphone or laptop.

4. Secure Document Transfer

You can send all of your documents to your accountant online, through a secured exchange portal. You get all the accounting services from the comfort of your home! Accounting firms that do income taxes for artists have document exchange portals fully compliant with IRS security requirements.

5. Easy Tracking

You can easily track your expenses and income with online accounting. All of your information is available on easy-to-read sheets where you can easily go through all your financial information for the last months. For example, you have all information about your outstanding debts and a clear breakdown of how much you owe in taxes. This helps give you improved control of your core finances and taxes.