• Tax Advice For Procrastinators
• Study: Dependent Coverage May Drive Micro-Biz Health Numbers Skyward
• Senate Promises Compromise, Movement On Housing Bill
• Now Available - Updated Schedule C: From A To Z

Tax Advice For Procrastinators

Tax Day is right around the corner. Check out these last minute tips from Keith Hall, National Tax Advisor for the NASE. Then visit the TaxTalk Web site for more tax tips or submit your question to the experts. Check for hidden deductions: There are a number of deductions that small business owners and the self-employed forget when filing taxes. If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction too. Retirement Savings: Retirement savings are deductible for last year's tax return up until April 15th of this year. That means you can count money deposited into retirement savings in 2008, up until the day you file, on your 2007 tax return. Filing Date: If, despite all your rushing around, you still can't make the April deadline, relax. All tax filers can get an automatic 6-month extension by filing Form 4868 by April 15th, which you can download from the IRS Web site at www.irs.gov. However, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe in taxes by April 17th, you'll be subject to late fees and interest. Check your math: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again. Start thinking about next year: While micro business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2007 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; reconsider the tax implications of incorporating your business; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan. Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including Schedule C from A to Z, a line-by-line guide for completing the tax form Schedule C, available online at www.nase.org. Additionally the IRS offers a Web site and toll-free help line, 1-800-829-1040, which offers assistance to small businesses.

Study: Dependent Coverage May Drive Micro-Biz Health Numbers Skyward Increasing enrollment by dependents of employees in health plans will likely put the pinch on micro-businesses. The Small Business Administration’s Office of Advocacy recently found that large firm employees married to small firm workers experienced a decline in coverage from work of almost three percent. However, the number of small companies offering coverage – and the number of employee dependents who enroll in that coverage – is proportionally fewer than their large counterparts. The findings show that almost half of small firm workers with a spouse working in a large firm were covered as dependents. Only a quarter (23.5%) of small firm workers with a spouse working in a small firm could say the same. Obtaining affordable family health coverage continues to be a challenge for micro-business owners and remains the chief reason why the NASE created its Health Resource Center. The Center’s up-to-date Web site offers cost-saving tips, health information and news. The study also indicated that a greater number of children are likely to have coverage if listed as a dependent of an employee working at a large firm. For example, 64 percent of children with both parents working at a small firm had dependent coverage. Eighty-one percent had coverage if both parents worked at a large firm. The full study is available at sba.gov.

Senate Promises Compromise, Movement On Housing Bill With more than half of micro-business owners operating out of a home office, the sub-prime mortgage crisis and subsequent collapse of the housing market has drawn national attention. Now, after weeks of gridlock, congressional members have agreed to a bipartisan compromise on legislation to ease the weight of the housing crisis on consumers. One particular provision in debate is whether or not bankruptcy courts would be able to cut the outstanding principal. The parties also differ on the way to handle the sale and acquisition of foreclosed properties. Democrats want to offer community grants to revitalize the properties, while Republicans would rather offer tax credits to those purchasing a home in foreclosure. The Foreclosure Prevention Act of 2008 would offer tax benefits to builders and other businesses and additional assistance for the refinancing of subprime mortgages facing foreclosure. The Senate began working on the aide bill (S. 2336) early this year and hope to attach it to a House-passed measure (H.R. 3221) on consumer protections, energy and homeland security. Read more about the bills at thomas.loc.gov.

Now Available - Updated Schedule C: From A To Z Don’t let tax season get you down… For every sole proprietor dreading Tax Day, this in-depth look at the Schedule C: Profit or Loss from Business is for you! “Schedule C: From A to Z” helps you find legitimate tax deductions and tells you everything you need to know about reporting them on Schedule C. Written by NASE President Robert Hughes and NASE National Tax Advisor Keith Hall, certified public accountants who understand micro-businesses, this book gives you: Line-by-line instructions for completing Schedule C Clear, concise directions for categorizing all of your business expenses Step-by-step instructions for claiming the home office deduction Easy-to-understand explanations for travel, meals and entertainment deductions Plus much more NASE Members can order a free copy or download the online version at news.nase.org.     Lawmakers and media outlets across the country rely on and regularly cite the NASE as a source of small and micro-business expertise. Help the NASE make sure the micro-business perspective is heard by taking this month’s poll. Click here to log-in and participate. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.