It’s tax season, the most dreaded season in the entire year. If you’re new to working from home, you might have a lot of questions concerning your taxes and where to begin. Here are some simple steps to work on organizing your taxes for this year and the years to come.

Step 1: Know what is tax deductible.

First and foremost, you will need to know what can be tax deducted. Pretty much everything around you can be tax-deducted. Did you know you can tax deduct your water, sewage, electricity, internet, and gas bills?! Save those receipts and keep them in a folder. At the end of the year, you will need to know the square footage of your office space, the percentage of usage from your internet (even phone if you use it for your job), and your house size to determine how much money you get to deduct from your taxes. 

If you spend money on your job, like buying paper clips, using a stapler, or buying postage can all be tax deducted! Save those receipts and keep them. However, receipts can fade and a good idea is to scan them and then attach the receipt to the scan copy with your tax deductible stapler.

Mileage can be deducted as well if you travel for your job. Download or buy a mileage tracker to keep track of your mileage because gas isn’t free and it can add up quickly.

Step 2: Start Organizing.

Start organizing your tax deductible items into topic related folders. In the Writer’s Market 2014 book, there’s a great article that discusses how to organize your work so you can quickly and easily add it to your taxes in Section C. Here are some categories that you will need to sort by topic:

Contracts (if applicable) 

Depreciation (computers, printers, desk; anything that will last for over a year)

Income

Other (postage, photo copying, books, subscriptions, membership fees, etc.)

Supplies (paper clips, printing cartridges, paper, file folders, etc)

Travel (Travels, meals (if eating out on the job or meeting with a client and buying a coffee, etc), and entertainment for researching for a client or company)

Utilities (light, gas, heat, electricity, internet bills, phone bills, etc)

Step 3: Keep Track of your expenses.

This has to be the most dreadful part of all, but you will need to start keeping a detail record of what you spend and how much you make from your bank account. Print off your business expenses and income every month. This will be easier if you set up another bank account for your business alone. Take the extra measures to be on the safe side and keep track of your expenses in an Excel sheet. This will be your life saver if the government decides to audit you one year.

It’s best to always consult with an Accountant to know how to best prepare for tax season, especially if you’re new to working from home. These steps are to help get you started and grounded for this time of year so you can get back to what you love doing.