Help for the sole proprietor:  preparing and filing taxes

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December 12, 2018

Are you a sole proprietor or would-be entrepreneur and befuddled by all of the tax law changes?  Are you concerned that you will have large filing fees as you get your business off the ground?

Volunteer Income Tax Assistance (VITA) sites can help by preparing a return with a Schedule C (self-employment income) for sole proprietors whose businesses show a profit, have less than $25,000 in expenses, and have no employees, depreciation or inventory.  The schedule is attached to the Form 1040, the basic personal tax return.

Free tax filing is available through MyFreeTaxes and the VITA program to anyone with an annual income up to $66,000 for 2018.   Granite United Way, AARP Tax Aide and other partners operate about 60 community-based sites in New Hampshire with returns prepared by IRS-certified volunteers and every return reviewed by a second experienced volunteer.

VITA and TaxAide locations are available at www.NHTaxHelp.org or by calling 2-1-1, New Hampshire’s toll-free statewide information and referral helpline.

Do you prepare your own taxes? Are they accurate?  MyFreeTaxes.com includes a toll-free telephone line and chat line to respond to questions, including how to enter and claim tax benefits such as the Earned Income Tax Credit (EITC).  Access this filing platform at www.MyFreeTaxes.com

The EITC is a support for those who are working for someone else or self-employed but don’t have high income. It can mean a boost of as much as $6,431 in 2018. You can learn more at https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit.

All VITA and TaxAide volunteers and the folks answering the call and chat lines at MyFreeTaxes are IRS-certified and up to date on the tax law changes.  You can save the cost of commercial tax preparation or filing software and put that money back into your business.

 

This article was provided by Granite United Way, which operates VITA sites in much of New Hampshire and in Windsor County, VT and was written by Cary Gladstone, Senior Director of Asset Building Strategies and chair of the CA$H (Creating Assets, Savings and Hope) Coalition of NH.  He can be reached at cary.gladstone@graniteuw.org.

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