Does the thought of filing your taxes leave you with dread? Are you confused about what deductions you can write off? Is your accountant familiar with affiliate marketing? If you aren’t sure what you can deduct from taxes in affiliate marketing, then you could be paying too much.
It is important to take all possible deductions to pay the least amount of taxes. Those who keep up with the latest credits and deductions for small businesses pay lower taxes and enjoy higher net profits. Does this describe your business?
If you’re interested in learning tips for taxes in affiliate marketing, then set aside half an hour now to listen to this episode of the Affiliate Buzz, where James Martell talks with Robert Kottke from Oregon Tax Services. The two discuss the difference between reportable and taxable income, what affiliate marketers can and should deduct, and more.
Overlooking deductions is a common problem with small businesses. Business Daily News reports that it’s important for business owners, like affiliate marketers, to know what all they can deduct to avoid paying more taxes than they should. This interview offers tips to help you accomplish that.
Why Taxable and Reportable Incomes Are Not the Same
James kicks off the episode asking Robert about his background. He explains how he transitioned from a career in engineering to one in accounting. Listeners may be surprised at the similarities between the two. Robert also shares why he sees his work as fun, and gives examples of some of problems he helps his clients solve.
Next Robert explains the difference between taxable and reportable income. He describes instances where non-taxable income may still need to be reported to the IRS, like work from freelancing or sales on internet auction sites.
If you have questions about which areas of income you should be reporting, then you could risk being audited in the future.
Taking More Deductions to Pay Less Taxes
Then Robert tackles the topic of deductions for taxes in affiliate marketing. When you turn your passion into a profit, looking at what’s deductible is less about considering what you do and more about considering how you do it. He also answers these questions:
- How do I report my income to the IRS?
- Do I qualify for small business tax benefits?
- Can I deduct my computer and printer?
- Will upgrading my equipment lower my taxes?
- What are the benefits of hiring an accountant?
Now ask yourself these questions. Are you sure you’re taking all the deductions that apply to your taxes? Do you have someone who can help you answer the hard questions about taxes in affiliate marketing? If you answered no, then it may be time to seek outside help.
Determining What Counts as a Write-Off
Robert segues into bookkeeping in affiliate marketing* with an explanation of rules regarding what small businesses can write off, like electronics and utility bills. He also talks about what expenses for developing a website qualify as deductible business expenses.
Robert also takes a few minutes to talk about forms beyond the basic IRS forms. His website offers worksheets that affiliate marketers can use to calculate their deductions. He explains why these worksheets are geared more towards internet-based industries rather than blue collar workers, like home improvement workers.
Accountants are there to help you get the most out of filing your taxes. Ones that understand affiliate marketing offer even more benefits. What’s keeping you from using their services?
The episode wraps up with Robert cluing listeners in on the one item that can help them best prepare for tax time. He offers a final reminder on the importance of record keeping, and then shares few final tips.
Are You Prepared for Tax Time?
Do you want to get more out of filing your taxes? Are you sure about what you can deduct to lower the amount that you pay? Listen to the entire podcast, and then if you have questions or comments please share them in the space below.
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You can visit Robert's website here: http://oregontaxservices.com/