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Tax Season: Things you Need to Know as an Independent Contractor

It’s that time of year where our stress levels arise and our concerns grow. But, if you are an independent contractor have no fear. Here are three tips for filing your taxes:

Organize your Receipts 

The law requires you to keep a record of your business transactions. So, why stress yourself when you could organize your receipts through out the year. As an independent contractor this is beneficial because it will help you save time when tax season arrives. Now that the world is more advanced digitally, having two copies of your transactions will benefit you in the long run. Organizing your receipts digitally will save you more time and the hassle will be less.

Save Your Money

As an independent contractor, you need to look carefully and understand what areas you can save money. For instance, did you know if you owed money from a client and you have not collected the money within a year, as an independent contractor you might be eligible to claim the money as long as you included it in the income of the year section. For more detailed information visit Canada revenue Agency

Understand Tax Deduction

When filing your taxes, make sure you understand all the areas where you could do tax deduction. After all, the goal is to save money. The more information you understand the more you save as an independent contractor. Here is a list of areas where you could apply tax deduction:

  • Employee salaries and benefits
  • Interest and bank charges
  • Insurance and premiums
  • Meals and Entertainment
  • Office expenses
  • Rent
  • Repairs and maintenance
  • Tools and equipment
  • Vehicle expenses

For more information visit FBC

 

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