As someone who will be partly self employed would it be helpful to separate all of those expenses from my regular job for taxes?

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Posted by Jack Schmieg (MONEY FORUMS: 4, Answers: 0)
Asked on May 17, 2016 1:13 pm
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I agree with Kathryn! But aside from the ease of tracking business expenses separately from your personal ones, you may not want your accountant (or the IRS) in your personal bank account come tax time. In the event you have to create income reports and expense spreadsheets, your account or tax pro will need access to your bank transactions. Thus, giving them a separate bank account, that’s not connected to your personal one, will keep your personal transactions private!

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Posted by Carrie Smith (MONEY FORUMS: 0, Answers: 1)
Answered: June 21, 2016 1:27 pm
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Hi Jack! Thanks for writing. Your finances and taxes will work out so much better if you keep the expenses from your side job separated from those from your regular job, if you even have any expenses for your regular job…most people don’t really have any or many deductible expenses for their main jobs. However, when you are self-employed, it’s very likely that you will have valid, deductible expenses that support your performance of that job. One good plan is to use a separate credit card and checking account to pay those bills; then at the end of the year when you are collecting documentation for tax prep, all the cash and credit expenses for that side job are in one place. Best wishes to you in BOTH your jobs! Please write back if we can offer more help.

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Posted by Kathryn Hauer (MONEY FORUMS: 0, Answers: 18)
Answered: May 23, 2016 4:59 am
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