Self-Employed in Tennessee? 7 Tax Mistakes That Can Cost You Thousands
Self-Employed in Tennessee? 7 Tax Mistakes That Can Cost You Thousands Running your own business gives you freedom, but it also means you are responsible for keeping up with taxes throughout the year. At Tax Services of Tennessee , we often work with self-employed individuals and small-business owners who are surprised by how much they owe at tax time. In many cases, the problem isn't that the business owner did something terrible. It's that nobody explained what they should have been doing during the year. Here are seven common tax mistakes self-employed taxpayers should watch for. 1. Treating Every Bank Deposit as Business Income If you deposit money into your business account, that doesn't automatically mean it is taxable sales. Your bank account may contain: Customer payments Transfers between your own accounts Loan proceeds Refunds Personal money contributed to the business Good bookkeeping means identifying what the deposits actually represent rather than simply addin...