It is the ultimate dream. Getting to sit in your pajamas all day and do a bit of work while watching your favorite show and hanging out with the kids. You don’t have to answer to a boss and can set your own hours and your own income. It is a great dream that many have, but only a few are brave enough to get out there and actually give a try.
Working from home may sound easy, but there is a lot that goes into this trade. You first need to decide what kind of work you would like to do and how it is going to make you a good profit. You need to worry about taking care of the kids while still getting your own work done in a reasonable amount of time. The costs of staying home, such as getting your own equipment and so on, can also add up.
If this is giving you a headache thinking about all of it, there is some good news. There are actually quite a few ways that you can save money when you are working at home. In fact, this is one of the most efficient ways to work compared to driving and seeing a boss every day, and those who work from home often report a higher standard of living and more happiness. If you are considering working from home and aren’t sure where to get started, consider talking to your tax professional to help.
Save Money on Daycare
When you work and have kids, the cost of daycare can be crazy. Often couples have one working to pay the bills while the other one has quite a bit of their paycheck going to the babysitter. This can make it really frustrating to see your check go to someone else taking care of your child while you have to keep working.
Yes, working at home does mean a bit more in taxes since you don’t have an employer helping out with that, but think of all the money that you are going to be able to save on daycare costs. The kids can stay home with you instead. You can tell the babysitter goodbye, unless you are looking to keep one on to help out with date nights, and instead of letting someone else spend time with the kids and raise them, you can enjoy these precious moments while saving a lot of money. While it may take some time to get on a new schedule so you are able to do some work in the beginning, you are never going to regret the time and money you save when you work from home.
Commuting and Clothes
Commuting can get really expensive, especially if your job is more than a few miles away. Not only are you missing out on valuable time that you could be spending with your own children and family, you are also spending your own valuable time not making money and causing some serious damage on your vehicle over time. Your boss definitely isn’t paying you for those damages and is it really worth all that anger and frustration sitting in the car each day.
In addition, there are many jobs that have a dress code to follow and you will need to ensure that your wardrobe will meet these requirements. This is more money that you will have to come up with. This is not to say that when you work at home you won’t have some clothes to wear, but often picking out a few pairs of jeans and t-shirts to wear around the home rather than fancy dress clothes is going to cost a lot less while lasting longer. Just think of how many new clothes you can get for the same money and the extra time that you can spend with your kids now that you aren’t commuting!
Tax Deductions
There are actually quite a few tax deductions that you could qualify for when you work from home. Remember all those pesky home office supplies that you are supposed to pay for in order to get your business running smoothly? You may be able to deduct some of these at the end of the year to save money and recoup some of the losses. There are quite a few things that you will be able to deduct, such as home office supplies, use of the phone for business, internet for business use, and even some of the mortgage for your home.
Figuring out the deductions that you are able to use for your home office can sometimes be a challenge, especially if you are used to working for an employer and this is your first year on your own. Your tax professional will be able to look over some of your records and help you to determine which deductions apply to you and how you will be able to use this benefit.
Hiring a tax professional is one of the best things that you can do for your own business. They will be able to help you to save more money than you will be able to do on your own while also answering any and all questions that may come up. When you are ready to see how your own home business can save your family money, contact our offices to speak to a local tax professional today.
Patrick O'Hara, EA