How does taxes work?

I work from home part time, how can i save money on my taxes?

• I normally pay my taxes on my own over the internet for free. I work from home and make $8,000 a year doing a part time job over the internet. This is in addition to my regular full time job. I pay taxes on this money but am wondering if I can save money on my taxes since I am working from home. I need the internet to do my job, electricity, heat, etc. Many people told me I could write things off on my taxes but what? I contacted my cable provider and pay one fee a month for cable/internet but they were unable to tell me what the internet cost is since it is one bill not individual fees. I was thinking I could write off half of my internet fee I spend for the whole year since I am at least using half of the internet for work and the other half personal. I work 1000 hours a year on the internet and have for the last three years. Any help or information is greatly appreciated. It may also be useful to know I do the EZ form every year never the long form.

• Answer:

  In order to write off some home expenses you need a space that is dedicated exclusively to work even if the space is 1ft x 3ft. Divide that by the square feet of your whole apartment and that is the percentage. Internet is a difficult write off. It is challenged a lot. You need to keep a log of when and how long you use it for business and personal. You have to know how much the internet costs. You may be able to get a breakdown from the company. Supplies such as pens, paper, etc are no problem. Keep all your receipts. You cannot use the EZ for write offs. Is this a job that you get a W2 for or are you an independent contractor? If you are getting a W2 then the writeoffs are no good unless you itemize.