Monday AM February 7th, 2011

Tax Day is still more than two months away. It’s never too early to start preparing your returns. Andrew Schneider looks at developments self-employed filers should keep in mind.

tax stressKeith Hall is chief tax advisor with the National Association for the Self-Employed. He says what tends to hurt small business owners the most when filing tax returns are the deductions they overlook.

“Not only does that cost you money, but it’s difficult to then go back and get that money back, particularly if you don’t know about those.”

Hall points to a change in how 2010 tax returns will treat health insurance premiums.

“In previous years, that deduction only showed up on page one of your tax return, right on the very front page of the 1040. This year, Congress is allowing us to take that same deduction in the calculation of self-employment tax. So there’s a new line, right on Schedule SE, that includes the health insurance premiums, and that’s huge for small business, because that’s up to 15.3% savings on the cost of health insurance right off the top.”

Hall suggests small business owners anticipating a refund should file early to beat the rush. He says the IRS is expecting taxpayers to file about 140 million returns this year.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

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