Know the difference between “tax credit” and “tax deduction.” A deduction is an expense or exception which reduces your total taxable income. The tax credit is what reduces whatever you’re on the hook for income tax wise.
Did you know?
As a self-employed professional you can deduct the cost of any business-related courses you take. This includes computer courses, any business courses, or any other course or class that can be used to improve your bottom line.
When claiming meals and entertainment expenses be sure to write down the name of the person you were with, for example, “potential client: Jane Smith”. Getting into this habit will help to audit-proof your return.