03/06/2026
đ Advanced Tax Tip Thursday Ideas
1. Track every business expense â small ones add up.
If you run a side hustle, expenses like software subscriptions, mileage, office supplies, professional development, and even a portion of internet or phone bills may be deductible when filing a Schedule C.
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2. Consider the home office deduction.
If you have a dedicated workspace at home used exclusively for business, you may qualify for the Home Office Deduction. This can include a portion of rent/mortgage, utilities, and internet.
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3. Set aside money for self-employment taxes.
Side hustlers often forget about the SelfâEmployment Tax, which covers Social Security and Medicare contributions that employers normally split with employees.
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4. Make quarterly estimated tax payments.
If you earn income outside a regular job, the Form 1040-ES helps you pay taxes throughout the year instead of facing a large bill (or penalties) in April.
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5. Take advantage of retirement plans for the self-employed.
Business owners can potentially contribute more to retirement through options like a SEP IRA or Solo 401(k), which can significantly reduce taxable income.
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6. Separate business and personal finances.
Opening a dedicated business bank account helps simplify bookkeeping, track deductions, and avoid issues if youâre ever reviewed by the Internal Revenue Service.
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7. Mileage can be a major deduction.
If you drive for business purposes (meeting clients, deliveries, site visits), track miles carefully. The Standard Mileage Deduction can significantly reduce taxable income.
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8. Consider forming an LLC or S-Corp as income grows.
Once your side business becomes profitable, structuring your business differently may help with liability protection and tax planning. Some owners elect S Corporation status to potentially reduce self-employment taxes.