Tax Deductions for Network Marketers

The 2016 tax deadline* is just days away! April 18th will be here in no time!

Are you ready? For some small business owners it’s a big nope! But I got you! No worries.

tax tips 1

Wearing many hats require me to know about as many tax deductions as possible. If you are in any MLM, Self Employed, you know exactly what I’m talking about.


Use this tax information as a Deduction Organizational Guide

Home Business Expenses

  Set aside a space in your home that is 100% business use.  Never used for anything else, and regularly used for business.  This is where you keep your business records, your business computer or laptop, make your sales calls from and meet clients.  The tax term is regular and exclusive business use.  If you do this, you deduct a percentage of the household expenses – rent, interest, taxes, utilities, insurance, repairs, etc, based on the square footage of the office ratioed to the home square footage.  Expenses directly related to the office, such as a dedicated phone line; do not have to be ratioed.  You can also take a small depreciation deduction for the home losing value.  -K.P. KP Tax Servive

  • Business cards
  • Brochures
  • flyers
  • stickers
  • cd’s
  • copying
  • printing
  • letterhead
  • advertising- Newspaper, magazine, radio, TV, internet
  • business checking account

Office Supplies

  • Envelopes
  • Postage
  • shipping
  • printer paper
  • printer ink
  • pencils , pens, markers, highlighters
  • notebooks
  • post-it notes

“The easiest mileage log is a notebook where you right the date, the trip purpose and the miles driven. ” K.P. -KPTax Service, Charlotte NC

Office Equipment

  • Computers and repairs
  • printers
  • fax
  • copy machine
  • answering machine
  • furniture
  • office space
  • file cabinets

Communication Expenses

  • Cell phone, phone bills
  • PDA
  • camera
  • video recorder
  • voice recorder

Travel Expenses

Go on trips that are going to increase your money-making potential.  Stay away from any others.  For legitimate travel, you get airfare, rental car, tips, taxis, laundry, internet and phone, as well as 50% of meals and any other reasonable and necessary expenses. K.P KP Tax Service

  • Mileage- trains, subways, bus
  • toll , parking fees
  • airfare
  • lodging
  • meals
  • conferences
  • conventions
  • seminars
  • entertainment
  • Business gifts

Internet Expenses

  • Website hosting
  • domain names
  • web design
  • blogging expenses
  • podcasting – ipod, software
  • accounting software
  • tax software
  • internet service
  • classes
  • webinars
  • marketing

Business Related Education

  • literature- books, journals
  • magazine subscriptions
  • educational cd’s and dvd’s

Trade Show Expenses

  • booth fee
  • travel
  • meals

There are so many more to add to this list. I intended to give you a mental rolling start. . I’m a tax expert. Contact KPTax.webs.Com  to discuss your particular tax situation. Also get  more guidance. Please buy my book. It’s a easy read and loaded with tips for Direct Sales professionals. Message me —>

Tax Time Momma. Here’s What to Know

January 20, 2014 will be here in no time! I have some tips to hopefully make this tax season less painful and more lucrative.

1. Keep track

If you itemize deductions, start keeping track now (or gather what you’ve already spent) of whatever they are. Whether you create a folder on your computer, in your email or have an actual envelope for receipts, start putting everything all in one place so you don’t need go searching come April. Depending on what industry you work in you might even be able to deduct things you didn’t realize. For instance if you work in entertainment, your cable bill, magazines and even movie tickets can be deducted. Work in sales? If you drive you can deduct your gas, tolls, parking, even car insurance. Be sure to ask your accountant what you can deduct for your job. And don’t forget those charitable donations!

2. Ask around

If you don’t want to do your taxes yourself, or maybe you just want to try another accountant, ask around. Talk to friends and family about who they use and why they like their accountant. This way you can get a head start. Many of them even use worksheets to track your documents and deductions so you might want to request this ahead of time. One of our sponsor brands, KP Tax Service has a user-friendly platform to help you get through it if you’re looking to brave tax season on your own!

3. Review and assess

Didn’t get a refund last year? Or did you owe more than expected? Talk to your accountant and/or review your return to see why. A few things you can look into for this year:

  • Increase your withholding: Check your pay stub? Do you declare yourself as married? Change it to married but withhold at single rate. Or even just single. This means they take out more each paycheck and you owe less at the end of the year. You can also ask the state or federal government to take out extra money each paycheck. This could be as little as $10 but might mean the difference between getting hit come tax time.
  • Participate in a 401K: If your company matches, this is a no-brainer. But even if they don’t, since this is pre-tax, it means you’ll be taxed on less income and again, might owe less in years to come.
  • Participate in an FSA: If your company allows you to participate in a Flexible Spending Account, for either dependent care (child care) or medical, this is also done pre-tax and will help you get taxed on less income at the end of the year.
  • Participate in a transit program: Here in NY we have WageWorks, a program that allows you to pay with your paycheck for public transportation, up to a certain amount. Again, this is done pre-tax and since it’s something you need to buy anyway, it pays (!) to deduct this from your paycheck.
  • Open an IRA: Depending on your circumstances, you can open an IRA up until the tax deadline and may be able to claim a deduction on your individual federal income tax return for the amount you contributed to your IRA.