Issue link: http://cp.revolio.com/i/142672
prepare for tax time are April 15, June 15, September 15, and January 15 for the final payment of the preceding year. Paying your quarterly estimated tax is going to save you from the shock of finding out you owe a big tax bill at the end of the year. When taxes aren't automatically deducted from your paycheck, as they are for employees, it's easy to forget that all that money doesn't belong to you. Seeking Help The tax-paying public tends to head for the accountant's or tax preparer's office as April 15 draws near. In reality, the best time to have an appointment is before you go into business, or the beginning of a new year if you're already in business. A certified public accountant, or certified financial planner, can give you advice on the best type of business structure to choose for your particular business situation, offer guidance on how much money you should be setting aside for your taxes (and your retirement), clarify what your deductions are according to your employment circumstances, and advise you on getting your budget back on the right track if it has fallen off. Deduct, Deduct, Deduct! Most people are aware of the obvious deductions, like advertising, rent, and utilities. Less obvious deductions shouldn't be overlooked. Basically, if it's for your business, it's a deduction. Taking a lomilomi class in Hawaii? Write it off. Buying music to play during massage? That's deductible. The business use of your car is tax-deductible; that is especially important to those therapists who do outcalls for a living. And practitioners who work at home definitely need to take advantage of the home office deduction. For complete details on deductions for the self-employed, visit the Internal Revenue Service website. If you are an employee, you may still be entitled to certain tax deductions, as long as they are not expenses that are reimbursed by your employer. For instance, if you're obligated to pay for your own work uniform, that's a deduction. However, you must itemize your taxes in order to take advantage of that, and you can only deduct what is in excess of 2 percent of your adjusted gross income. Expenses You Cannot Deduct Deductions can be confusing and the IRS has little sympathy for those who abuse them, so proceed with caution. Following are some examples of possible deductions that may suit practitioners. While uniforms are tax-deductible, clothing that is adaptable to everyday use is not. You might have a hard time convincing the tax auditor that you can't also wear those khaki pants and polo shirts you wear to work to the bowling alley or the grocery store. Job-hunting expenses are only deductible when you are seeking to change jobs within the same profession, and cannot be taken when you are looking for your first job, or changing career tracks altogether. In the same vein, a therapist just starting her career may not be able to deduct the cost of taking the exam required for initial licensure, but once in practice, would be able to deduct the cost of an advanced certification. Personal expenses, like gym memberships and nail and hair services, can't be deducted unless you're a model or an actor who can prove it's vital to your career to look good. You can deduct the costs of belonging to a professional membership organization, but you can't deduct your membership to the local country club. If your business is strictly an outcall business and you document your mileage, that's a legitimate deduction. However, some folks have had the crazy idea that they can deduct the entire cost of their auto by putting a magnetic business sign on the family car. Wrong. The only thing deductible in that case is the cost of the sign.