You've heard it before. As Ben Franklin wrote in a letter in 1789, "... in this world, nothing is certain except death and taxes." To this day, people still quote (or at least paraphrase) that statement. Why? Because taxes are still an essential fact of life - and business. And, happily, so are tax write-offs!
Some of the most common tax deductions for the self-employed include home office space, internet and phone bills, travel and vehicle use, and professional services - which leads us to our topic today. Did you know that services rendered by a virtual assistant (or VA) fall into the category of professional services that are tax deductible for your business?
For example, an individual in the 24% federal tax bracket would theoretically save $240 if he deducts $1,000 of professional fees paid to a VA. In addition, if this taxpayer filed a tax return in the State of Georgia, he or she would save approximately $55 in state income taxes on this expense.
Income taxes are a complicated topic and I am not a CPA. The example above is just a simple illustration to show the tax deductions available for professional fees paid to a VA. For more on tax deductions you might be missing, check out this great article from Intuit TurboTax called Top Tax Write-offs for the Self-employed.
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