One of the things I did last year, as the taxes for my home business become more complicated, was finally hire an accountant to take care of tax preparation. Perhaps the most useful home business tax tip is to have someone else figure your taxes. Chris Bibey at the Tax Center offers this regarding your taxes:
As a new small business owner you may feel pressured to wear many hats.
Of course, there are some things that you will do well and others that
you will need help with. One area in which you may need help is with
taxes. Do yourself a favor and hire a certified public accountant to
assist you from day one.
I found that it is much easier to keep track of my income and expenses, and then have someone else take care of the taxes. The headaches, the time spent deciphering forms and trying to make sure I’ve got all the deductions and credits I’m entitled to just isn’t worth it any more.
Yes, it costs $473 for the accountant to take care of the home business tax stuff. But the $350 it cost for the business tax return can be deducted on next year’s taxes — and I can use the time I would have spent to make more than what I pay the accountant.
I can see the headache of doing your own taxes. I'd rather pay someone to do my taxes for me then to get more aggravated.