The Income & Expenses Dashboard automatically sorts your transactions to find and categorize expenses. However, if you have questions about what can be deducted, we're here to help.
Can I take a home office deduction on my taxes?
The IRS offers two options when deducting a home office: a simplified option and a standard method.
We suggest gathering the following information:
Square Footage of Home Office: You will need to gather the total area of your office and the total area of your home, or the total number of rooms and the number of rooms used by your business.
Direct Expenses for Home Office: Any expenses related to paint, wallpaper, or carpeting used in the office area.
Indirect Home Office Expenses: Rent or real estate taxes, mortgage interest, homeowner's insurance premiums, and monthly expenses for services and utilities.
How can I take a gas or mileage deduction for taxes?
The IRS offers two options: an actual expense method and a standard mileage method. We suggest gathering the following information:
The estimated number of miles you travel for work every year. A rough estimate is fine if you have an approximate figure.
Expenses directly related to car use. This can include monthly payments, auto insurance, gas expenses, and maintenance costs.
Should I save receipts in case of an audit?
You don't need to save all of your receipts, but must keep accurate records. The IRS says that supporting documents are required in the case of an audit to trace business expenses.
Supporting documents can be bank account statements, credit card statements, invoices, or any other document identifying the payee, amount, and proof of payment.
How does Velocity Global Contractor Management help me prepare my taxes?
Velocity Global Contractor Management keeps track of your income and expenses for you. Then, when it is time to file, you can use the Income & Expenses Dashboard to export your tax-ready financials for DIY filing or for your CPA.
Consult a Tax Professional
For personalized advice and assistance in understanding your tax obligations, it's always best to consult a tax professional.