The Entrepreneur and the Right Tax Options for You

As an independent entrepreneur (self-employed person) you must submit a 2020 tax return on your results from your company before 1 May 2020. You do this annually. In this article, we would like to explain to you how, as a self-employed person, you can do your own tax return 2020 (2020 income tax return) in three steps. And what you should pay attention to. We also give tips on how to save tax. The use of the taxfyle.com/sales-tax-calculator comes perfect there.

Do Your Own Tax Return 2020 In Three Steps

Your 2020 tax return (2020 income tax return) for a self-employed person seems more difficult than it is. If you know how it works, it is possible for most to do this yourself. I will explain it to you in three simple steps.

Collect the correct data for your 2020 tax return

Determine your deductions

Fill in the other required information

It is important here whether your activities are seen as profit from business or as results from other activities. Before I explain all of the three steps, I will first discuss the differences between profit from business and results from other activities.

Tax Return 2020: Profit From Business Or Result From Other Activities?

The question is how you should enter your activities in your 2020 tax return. Your independent activities can be seen by the Tax Authorities as:

  • income from business
  • result from other activities
  • hobby

Each category must be indicated differently in the 2020 tax return (2020 income tax return). This makes it important to know how your activities are qualified.

In your 2020 tax return (2020 income tax return) you state the results as profit from business or result from other activities in another part of the income tax return. For profit from a business you have to answer many more questions and fill in information than for results from other activities. If your activities are seen as a hobby, you don’t even have to declare anything in your 2020 tax return (2020 income tax return).

Increase Or Decrease In Activities

Based on how your activities are classified by the Tax Authorities, you will receive an invitation to submit a 2020 tax return. You may receive an invitation to declare your result as profit from business or as result from other activities. You may also initially receive an invitation to complete your 2020 tax return as a result of other activities. But those circumstances have changed to such an extent that these activities can be classified as profit from business activities. Do you still want to receive an invitation for a profit from business declaration? Then you should contact the tax authorities or an accountant or tax advisor who will arrange this for you. For the sales tax calculator this is important for the right calculation.

Collect The Necessary Data

First of all, you must collect the necessary data for your 2020 tax return (2020 income tax return). You should have stored them together or processed them in an accounting package over the course of the year. Then it shouldn’t be too difficult to find everything together.

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