The People Vs. Uncle Sam

As you all know tax season will be coming to an end soon and for many of you including myself you are not a fan of Uncle Sam. If you’re single and have a good job you don’t get much, if you have kids and have a good job you don’t get much, if you’re married and both of you have good jobs, bless your soul if you are expecting anything. The problem with all of this is how is it that those who are from a higher tax bracket pay less taxes without struggle and we who are working citizens of this country must pay so many taxes. I myself make a decent living wage and I feel like so much gets taken out of my check each pay, and this is without claiming myself. How is this possible you might ask?!

Do any of you have businesses and expenses to claim?

Do you have employees you have to pay?

Do you own a multiple residential property?

Do you donate a lot of money to charity?

Do you max out your retirement savings account?

For me the answer is ‘No’, but I am trying to figure out the system. I have been watching various videos and reading many articles recently about Home Based Businesses. With these options you oversee your own taxes as you are listed as being self-employed; you are in control your taxes in reporting your expenses with receipts, or if you want to make it a joint business your family can become your employees who must get paid, which equates to you getting more money back each year if you report everything appropriately. Now the challenge is to think of a legal service you can provide with a skill you have or a service you can provide such as creating budgeting sheets and selling them on Etsy, making quilts, tutoring online, being a virtual assistant, and/or starting a blog on a specific topic among other ideas.

Starting off with a sole proprietary which is only one person (you) running the business to test the waters is a good idea to see how everything runs and if the business is for you to keep before going on to form a LLC. You can even use your own name as the business name but if you want an assumed name you will have to pay a fee based on state and county. Your expenses will be your supplies and bills, so if quilting your sewing materials, percentage of your light bill as you need electricity to operate your machine, and gas if you deliver orders or packaging for shipping; now with your expenses and how much of your products you sold did you make a profit or had a loss. When you factor in your full time W2 paying job and having this side business taxes Uncle Sam will take and then giveth because with the business done the right way with the right accountant you will get some money back for sure or be able to pay what’s owed by your regular personal taxes with the home based business profit.

Below you will find some videos from Lynn Richardson who has a great business in educating others on starting home based businesses as well as real estate and online articles for ideas of businesses and how to start one. So, what are your thoughts on trying this? Do you already have one? Share with us!