Parents And Home Business Owners: Your Fairy Tax Godmother Has Arrived For Your 2015 Taxes
I wish someone had explained to me that as a custodial parent and a new home business owner, I could have applied a few credits and home office deductions to my taxes. I ended up overpaying in my taxes in previous years. Arrrggghhhh!!!
So think of me now as your 2015 Fairy Tax Godmother who is here to wave her wand and give you some much needed advice to avoid overpaying your 2015 taxes!
PARENTS, PARENTS, PARENTS!
Make sure you claim the Earned Income Credit (EIC) on your taxes for 2015! Even if you receive child support and the other parent can claim your child (Form 8332), you may still qualify for this credit!
To qualify for the EIC, you must have:
earned income from working for someone or from running or owning a business or farm and meet basic rules. And, you must either meet additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.
If your gross income from the business use of your home is less than your expenses, the deduction for some expenses may be limited (Schedule C form), and if you claim deductions as an employee, your business use must also be for the convenience of your employer. You would have to use the Schedule A form for that.
I hope this bit of info helps you reduce your taxes for 2015!