TOP TAX TIPS FOR BUSINESSES & ADVICE FOR INDIVIDUALS
Tip # 1
IRS . gov is the source for the best and most accurate information . As a business owner , you should review the IRS website periodically for any changes or updates that may affect you or your business .
Tip # 2
Google “ Self-Employed Tax Tips .” Education is key for tax success . Don ’ t just rely on your preparer . By being proactive with your tax matters , you can verify that your tax professional has all of the information needed to get your maximum return . This is also a great way to determine if you have the best service provider . If your search for information reveals new updates , laws or rules that your preparer is not aware of , you might want to interview other tax professionals .
Tip # 3
Recordkeeping is key to smooth tax preparations . Be sure to maintain impeccable records . Keeping an accurate log of all transactions and deductions can only benefit you when filing your taxes . If you are experienced in Excel , a spreadsheet would be a good place to keep a proper log . Other options could be using basic accounting programs like Quicken or QuickBooks , which can help you keep track of your expenses and provide multiple reports in various forms .
Tip # 4
Another good rule of thumb would be to open a separate checking and savings account just for your business . The checking account should be used for all business income and expenses ; this cuts your tax preparation time in half . The savings account is important to put away the estimated tax amounts that you will owe for the year .
The above self-employed tax tips will definitely make your life easier when getting your taxes prepared for your business . The information that is necessary for proper filing can be a lot to keep track of . Bookkeeping and accounting services are essential for small businesses . Allowing the professionals to focus on what they are good at will not only create a hassle-free tax experience , it will also guarantee accuracy and allow you to focus on running and growing your business .
For Individuals :
Many Americans are resorting to preparing their own federal and state tax returns , and even more individuals utilize tax professionals . Whatever decision is made , there are important tax tips that everyone should be aware of :
Tip # 1
A W-2 or 1099MISC is needed to prepare federal or state returns . The IRS states that all employers must have filing forms mailed out by the 30th of January ; therefore , taxpayers should receive their W-2 or 1099MISC forms before February 15th . In the event forms are not received by that date , it is recommended that you first contact the employer to verify the mailing address . Many employers also provide Internet access to retrieve forms online .
Tip # 2
A popular tax tip to consider is checking the tax deductions that are available to taxpayers . It is estimated that many taxpayers lose millions of dollars yearly from tax deductions that they were entitled to but failed to claim . A professional tax preparer invests in the knowledge , software and updates that guarantee individuals all of the tax deductions they qualify for . When an individual takes on the role of preparing their own taxes , he / she is most likely missing tax deductions that may increase his / her refund check . To prevent losing money , it is wise to either invest in the proper knowledge or hire a tax professional .
Tip # 3
Our final tip for individuals is to file on time or file an extension prior to the deadline date . If you believe that you owe taxes but can ’ t pay them immediately , don ’ t delay your filing . There are payment plan options to assist with the debt owed . One of the biggest errors that taxpayers make once they realize funds are not available to pay taxes is to not file a tax return . Many people believe that not filing a return will prevent a debt from being owed , but this belief actually makes your situation worse . Taxpayers have the option to file an extension ; however , the estimated amount of taxes owed is still due on the traditional tax deadline . Therefore , keep in mind that the IRS will impose a number of late fees and penalties on tax payments that are not received in time . Ignoring the IRS is never a good idea and may increase the amount of penalties and fines for the year .
These helpful tax tips are just a few of many that individuals should be aware of prior to filing . The above tips will also assist in reducing the amount of money that could be owed or increase the amount due back from the IRS . There is never a reason to pay late fees or lose money due to you . Have a happy tax season and remember , April 15th is the deadline to file , or late fees and penalties may be assessed .