Taxes are not one of my favorite things – mostly because I’ve always had a difficult time understanding it. That and I wasn’t exactly thrilled if I had to pay money. I often wondered if there was an easier solution. A simpler solution that didn’t involve me pulling my hair out. Now, thanks to The Motherhood and United Way for sponsoring this conversation, I am so happy to bring you these tax solutions for work at home moms.
Perhaps the most common misconceptions about taxes and your online business is that the two are not related to each other. Most people think that online businesses are not really taxed that’s why more and
more people are becoming attracted to start their very own online business.
Most people who don’t really have a stable background about online businesses and taxes would most probably guess that owners of online businesses are able to be exempted from paying taxes.
However, in reality, online businesses are still covered with tax dues.
“But I Am Working At Home” (And Other Lame Excuses Not To Pay Taxes)
Why You Need to Pay Taxes as a Work at Home Mom
The most common excuse of people who have online businesses who wish to ditch paying taxes is that they are “working at home”.
What most people don’t realize is that taxes are actually based on the sources and amount of the income as well as the types of services and products sold; not on the location of the business.
So whether you are working at home, in a store or in a warehouse, you are still obliged to pay for whatever tax is due to you.
Whether your online business is a sole proprietorship or incorporated, you will still need to fill up some important forms so that your online business can be deemed as legal and so that you can pay the proper taxes regularly.
Taxes to Pay Attention to for Work at Home Moms
If you have an online business and you are wondering if you still need to pay federal taxes, the answer is
yes.
But before you go around and complain about the unfairness of the world, you might as well learn more
about the federal taxes that you need to pay.
If you are a sole proprietor of an online business, any income you earn through your online business will
be taxed as income on your PTR or personal tax return.
In addition to that, you are also obliged to pay your portion of social security and medicare taxes using
schedule SE.
However, if you have incorporated your business, the way of paying taxes will become slightly different
compared to when you are the sole proprietor of your online business.
Sometimes, the tax you pay as an incorporated online business will also depend on the kind of organization. It’s either you will pay tax at a corporate level or it will be passed down to you as an income.
Dealing with an taxes and your online business can be quite an ordeal if done alone so it would be much
better if you’d contact experts regarding this matter such as a lawyer or a certified public accountant.
If, however, you are doing this on your own, I am so thrilled to share this resource with you!
It’s called: My Free Taxes
Why should you use this service?
- If you earned less than $66,000 in 2017; this service is for you! File both your state and federal taxes for FREE.
- MyFreeTaxes is completely free- no loopholes, no catches. Free means free.
- MyFreeTaxes is powered by HR Block and if you have any questions along the way, there are IRS certified specialists to answer your questions.
All you have to do is upload a picture of your W2 and MyFreeTaxes will automatically fill in your information. This is a mobile friendly solution, too! Use it on your desktop computer, laptop, tablet, or phone.
MyFreeTaxes is available for individuals or households that have earned less than $66,000 and support is available in both English and Spanish.
Unsure about your deductions or credits? MyFreeTaxes will help you with that too.
And yes- you can use this if you’re self-employed which means MyFreeTaxes is a great tax solution for work at home moms.
MyFreeTaxes is also the only free, national, and online tax filing product offered by a non-profit. 70% of US taxpayers qualify for free tax filing. If you’re one of those taxpayers, I would highly encourage you to consider MyFreeTaxes as your tax solution.
Kori
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