It's getting towards that time of year again, and I'm busy trying to figure out ways to pay as little in taxes as possible.
My main concern is $9000 (gross) that I made this year through my business. I only have about $1000 of possible deductions, so that leaves me with ~$8000 of horrible horrible taxable income. Since this is the first year of my "business" (and the last), I haven't had to deal with this problem before, so please, treat me like a n00b. What I would like to do is to set up a SEP-IRA and make two contributions: an employer contribution, and an employee contribution.... and then deduct those from my gross income.
I have been reading IRS publication 560 (a real thriller I might add), but just wanted to know if there were any BETTER ways to minimize taxes for a "small business" owner. I would also be interested to know of any possible "small business" tax credits that I could take advantage of.
Thanks for everyone's expertise.... you guys saved me a chunk of cash with the COBRA advice about 2 months ago!
My main concern is $9000 (gross) that I made this year through my business. I only have about $1000 of possible deductions, so that leaves me with ~$8000 of horrible horrible taxable income. Since this is the first year of my "business" (and the last), I haven't had to deal with this problem before, so please, treat me like a n00b. What I would like to do is to set up a SEP-IRA and make two contributions: an employer contribution, and an employee contribution.... and then deduct those from my gross income.
I have been reading IRS publication 560 (a real thriller I might add), but just wanted to know if there were any BETTER ways to minimize taxes for a "small business" owner. I would also be interested to know of any possible "small business" tax credits that I could take advantage of.
Thanks for everyone's expertise.... you guys saved me a chunk of cash with the COBRA advice about 2 months ago!