Self-employment can be a great thing. You get to set your own schedule, be your own boss and make all management decisions that need to be made. It can be great, but ask almost any self-employed individual if it involves a lot of responsibility and they'll quickly respond with a "yes." Taxes are one of those responsibilities that can cause more than a headache.
Tax day is just a week away, and many Minnesotans are scrambling to get their income tax returns prepared and filed in advance of the April 15 deadline. Like most people, their goal is to minimize the amount of taxes they have to pay - or, even better, to get a substantial income tax refund.
Many Minnesotans may worry that taking deductions on their taxes for a home office will trigger an audit. That may have been the case years ago, but now better than half of Americans either work for a small business or own one. And more than half of these small businesses are home-based with space for home offices. The advent of the internet along with technology improvements have also resulted in some businesses large and small implementing virtual offices recruiting employees from around the country who work out of their homes.
During the recent election cycle, there were ongoing reports of churches in Minnesota and elsewhere taking political positions and preaching politics from the pulpit. This is an equal opportunity occurrence with groups from a variety of religions.
Minnesota is home to a significant Native American population and several reservations and Indian-run casinos. If you are confused as to how tribal lands and income relates to the Internal Revenue Service, you're not alone. According to a recent news article, not even the IRS may be clear on what they can and cannot tax.
Whether you use a professional tax preparer, or do your taxes with a pencil at the kitchen table, once your taxes are done, what do you do with all that paper? The temptation may be to keep it all, but that would be too much. Other people may want to keep only the return itself, but that would not be enough.