O/O tax write off

Can enough tax deductions reduce the amount of taxes you owe to $0?

 

Basically you’re taxed on what you earn after deductions. If your deductions are equal to your gross that’s not good.

 

Thank you. So the deductions when done properly will effectively lower your taxable income and possibly your tax bracket. And I'm guessing you can use tax credits after that

 

But you can track your mileage from your personal vehicle and claim that.

 

Atbs only way to go.

 

If you do it right, you'll get $ back...

 

Phone and internet are 100%.

You should have 300 or 400 in office supplies.

 

Easy to do. Buy a new truck with borrowed money. Depreciate the truck using section 179 in an amount equal to your income above the tax threshold.

When you run out of depreciation, buy a second truck, lather, rinse, repeat.

 

maybe if your new and dont no better. Atbs will have you paying WAY more than you should. I tried them one year, I told them I just wanted bookkeeping. They told me they would do taxes anyway. They had me paying almost $8000. Told them do not file, I only wanted the bookkeeping. My accountant did taxes and I paid $3600.

 

It's not rocket science but it does take more time and patience that most have to spare. If you used Turbotax last year you are probably fine. I have been using it since 2015 and doing it myself and even had to do a Schedule C in 15 for 1099 income driving taxi and they never called me on it. If you screwed it up bad enough you'll have a letter in the mail from the IRS within 1-1.5 years wanting a word with you about it. States are much quicker to respond if they think you underpaid them. I had a year where I actually paid an accountant to do mine and I still got a letter back from the State of New York a couple months later saying I owed them another $200 or so, so just because you paid someone to do them is NO guarantee they wont screw it up either. Luckily I live in a state now that does not have income tax, so that is pretty nice and saves some hassle at tax time.