H&R Block advises gig economy workers to organize tax documents, file and prepare for next year
“Anyone who earns money by providing goods and services to customers is earning self-employment income,” said
Organize documents for 2017 tax return
Tracking down and organizing tax-related financial information is the first step in filing an accurate tax return. Self-employed taxpayers will need information that details these financial transactions, expenses and outcomes:
- Income from 1099-MISC, 1099-K, receipts and sales
- Business/self-employed expenses – advertising, legal fees, employee wages, business insurance, cleaning expenses, day care expenses, etc.
- Cash or accrual accounting method
- Inventory
- Net gain or loss
- Employees
- Depreciation – vehicles and other equipment
- Home office – utilities, mortgage interest, real estate taxes, etc.
- Prior-year, unallowed passive activity losses.
“After they get their documents organized, taxpayers need to pick the tax prep method they feel most comfortable with. For some that will mean working with a tax professional and others will choose a DIY product – either way,
File the 2017 tax return
This tax season
“An added benefit of using H&R Block’s new Self-Employed DIY product is that all of the online products can be combined with Tax Pro Review, making it possible for a completed DIY online tax return to be reviewed and filed by a tax pro – all without the client making a trip to the tax office,” Watts said.
Additionally, Self-Employed integrates the mobile expense tracking app Stride Tax, which automates mileage tracking and helps clients discover tax deductions unique to their profession. The Stride Tax app is in the
“Taxpayers can start getting organized now for filing their 2018 tax return by using the Stride Tax app and learning about how tax law changes are impacting their tax situation,” Watts said.
Prepare for 2018 tax return
All taxpayers need to find out how their individual tax situation is impacted by the Tax Cuts and Jobs Act – everyone is impacted. One resulting addition that will directly impact self-employed taxpayers is the ability to deduct up to 20 percent of qualified business income from a sole proprietorship, partnership or S corporation.
Taxpayers have multiple ways online to access
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Source: HRB Tax Group, Inc.