In this age of the internet, it’s very convenient to earn an income while staying at home. Your options are to work for various companies on a freelance basis or run your own business.
Income that can be earned from a home-based blogging job or business varies but if you’re patient and resourceful enough, a high income is very possible. What you earn can be the same as that of an office employee or even bigger.
You have to be aware, however, that even if you’re home-based, you still need to pay your taxes. The amount is basically the same as what you pay for your social security and Medicare.
On the other hand, it shouldn’t bother you to pay taxes to the IRS on a regular basis because you can still avail of tax deductions. What this means is you have an opportunity to pay lower tax rates if you’re qualified to claim those deductions.
The home office deduction is one of the largest you can avail of. There are certain requirements that need to be met, though. Firstly, you have to ensure that part of your home is used exclusively for work or business purposes. Using a certain portion as a storage place for inventory or products samples is also allowed.
Telecommuters or those working at home for a company may claim deductions as well upon meeting specific criteria. A freelance blogger or content writer, for instance, must be using his home while working for the convenience of his employer. Another requirement is that the worker must not rent part of his home to the employer and use that space to perform services for that particular employer.
Did you know that you can also deduct some of your personal housing bills as part of your business expense? These can include your rent or mortgage and even real estate taxes if you own the home. Other expenses that can be charged to your taxes are your utilities, insurance and home repair costs.
If you need to use a car or any type of vehicle in relation to your work or business, you may deduct your traveling costs, too. Travel related expenses can include driving to customers or patients, suppliers or vendors, a bank to do some financial transactions or to an office supply company to purchase certain materials.
The cost of your computer which you use for business or work purposes can also be written off. You must, however, monitor its business usage in order to claim the deduction. Business usage should exceed 50 percent of the total usage of your computer.
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