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Most advocate members of the Alliance are either in business for themselves, or they work as independent contractors. In both cases, US federal income taxes are filed using a Schedule C – profit or loss for business.
Most advocate members of the Alliance are either in business for themselves, or they work as independent contractors. In both cases, US federal income taxes are filed using a Schedule C – profit or loss for business.
There are certain categories of business expenses that can be deducted each year. To make your life simpler come tax filing time, you can set up your receipt filing system to make your tax filing far more simple than it might be otherwise — whether or not you file your taxes yourself or pay someone else to prepare them for you.
Find a box or a file cabinet that uses hanging file folders. You’ll need 20 folders (or maybe a few more if you keep other kinds of business forms along with these receipts.)
Label the folders using this list, including the numbers. They are taken directly off the Schedule C:
Not all advocate businesses will need all these folders. Most are self-explanatory, but for those you aren’t sure about, you can check these instructions from the IRS (pdf format) for explanations of each.
Come January 1, put the receipts from each file folder into their own, labeled envelopes, and you can begin using your same filing system all over again.
Just a few moments each time you save a receipt may save you hours when it comes time to file your taxes!
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