I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to legitmize my earnnings

So I’m 22 and I’ve been unemployed for the past 3-4 years staying with my cousin on and off. (Please no insults, I was depressed, dropped out of high school like an idiot and had a lot of trouble finding jobs) I had a few part times jobs before that.

Anyways, I havent filed taxes since 2005 or 2006 when I did for my part time jobs. Earlier this year I started on a website called keen doing advice work over the phone (they dont send me a 1099 but I’ve been keeping track of all money I’ve received from them and have made about 5,000 in income so far and will be reporting it as self employed from what I’ve read. I know about the tax rules and everything now from days worth of reading and researching but it has got me to thinking about audits now. I have very few deductions to write off on my schedule c (mostly advertising expenses like business cards and flyers i passed around) so I’m not worried about getting audited based on my deductions. But I’ve read that they compare this year’s tax return to last years, so since I havent filed a tax return for about 3 years and there is nothing to compare this year’s return to am I likely to selected? I have receipts for my deductions saved but I’m more worried/embarrassed about dealing with the confrontation and explanations of the past 3 years with an IRS agent.

So as a newly self employed person with no prior year return filed am I likely to get audited?

I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to solidfy my earnings???

I have an at home based business. that actually provides a beauty service. I sell no product. But I have a designated room in my home for this. i dont have a corp or llc or s corp. i just work from home doing my service., to be more specific i do eyebrow threading. its an alyernative to facial waxing. I want to know whats the best way to take advantage of deduction with this type of business. I also get alot of payment thru cash. si what should i do before tax time to get the greatest return and avoid red flags and audits.
I dont own my home i rent, i have a designated room for this purpose, & I am not in india i am in the US. usually my husband and i do joint filling with him as the sole bread winner, Iam stay at home mom. But I started this, side work and it has turned out very well for me. so hearing about all the benifits of home based business, i wanted to see what i could do. would selling product be a way to legitmize my earnnings