What Can I Do Throughout the Year to Maximize My Refund and Reduce My Debt if I’m Self-Employed?

If you are self-employed or own a business, proper tax planning throughout the year can make a big difference in reducing your tax burden and maximizing your refund. Here are key strategies to optimize your tax filing and keep more of your hard-earned money.

1. Keep a Detailed Record of Income and Expenses 📑

Good organization is essential to properly report your earnings and claim all available deductions.

📌 Tip: Use tools like QuickBooks, Expensify, or even a simple spreadsheet to track your monthly income and expenses.

2. Set Aside Money for Quarterly Tax Payments 💰

If you’re self-employed, you may need to pay estimated taxes every quarter to avoid late payment penalties.

📌 Recommendation: Set aside at least 25-30% of your income for taxes to prevent surprises at the end of the year.

3. Take Advantage of Tax Deductions ✅

Identify all deductible expenses, such as:
✔️ Home office expenses.
✔️ Transportation and mileage.
✔️ Work materials and supplies.
✔️ Health insurance and retirement contributions.

📌 Example: If you use your car for business, you may be able to deduct a percentage of its maintenance and fuel costs.

4. Contribute to a Retirement Plan 🏦

Contributions to retirement accounts such as an IRA or SEP-IRA can help lower your taxable income.

📌 Tip: Consult with an advisor to determine how much you can contribute based on your financial situation.

5. Separate Your Business and Personal Finances 🏢

Opening a business bank account will help you better manage your income and expenses while making tax preparation easier.

📌 Benefit: It prevents errors and confusion when filing your tax return.

6. Stay Updated on Tax Law Changes 📚

Tax laws change frequently. Stay informed about new benefits, deductions, and regulations that may impact your business.

📌 Recommendation: Follow our social media and consult with a professional before making any changes to your tax strategy.

7. Work with a Tax Expert 📞

The best way to maximize your refund and reduce your tax burden is to consult with a professional who can help structure your tax strategy effectively.

📞 At Viera Services, we help you optimize your taxes and take full advantage of your deductions. Contact us today!

📍 Gainesville: +1 470-846-6232 | (770) 287-7745
📍 Cornelia: +1 706-778-6478