It’s never too early to start planning for tax season. Even though it’s customary to wait until April to file your personal and business taxes this year, the tax deadline has been extended to May. Even if you have put your taxes off until the last minute, there are still plenty of things you can do to help make the tax filing season easier, save money on taxes, and still get a tax refund.
1. Small Business Preparation Tips
Seek out help. Many individuals and small businesses don’t have someone on hand, they can go to for tax advice every step of the way. If you’re not sure what kind of tax deductions you qualify for or what you need to do to take advantage of tax deductions, then this is the time to enlist the help of an accountant or CPA. An accountant can explain complex issues in layman’s terms so that you don’t fall victim to the paperwork. On the other hand, many small business owners may not have someone who can give them the best tax advice and in many cases, the help of a CPA is not available to them. In these cases, it is best to follow the tax tips listed here to ensure your best tax results next year.
Take advantage of the home-office deduction. Many business owners take the home office deduction because they have a home office where they conduct their business. If you run a home-based business, you may also be eligible to take this deduction. As a home-based business owner, you’re allowed to deduct expenses for your home office. To take advantage of this deduction, you should document every expense related to running the home office. You can save money and boost your small business tax returns by researching all potential tax credits and deductions such as deducting your home office and tax credits for making your business green. Making green updates to your business will benefit you come tax time but it can also save you money year-round on your Met-Ed utility bills.
2. Pros And Cons Of Hiring A Tax Professional Vs DIY
If you are like many people out there, you are probably asking yourself why you need to hire a tax preparation professional. After all, this is the one who is going to prepare your taxes for you, right? Right. Unfortunately, if you are like many people out there, this might not be the case. Whether because of a sudden change in your life or just because you feel that you are being cheated, you might find yourself wanting to hire a tax preparation service. Before you do, however, it is important to understand how exactly they work and whether or not it is something that you really need.
For one thing, tax preparation services are not meant to take care of your taxes. Rather, they are supposed to help you make sure that everything is done right. While there is nothing wrong with wanting to have your taxes prepared by a trained professional, it is important to realize that this is not an easy task. As such, you need to make sure that you hire a tax preparation service that has an entire team of experts whom you can turn to at any given time should you need their services. By doing so, you will be able to rest assured that you will get what you pay for.
Also, when you hire a tax preparation professional, you will be getting a seasoned professional who will be able to help you understand what tax codes mean, as well as help you make sure that everything you need is filled out correctly. This can be a huge benefit when you are ready to file your taxes, as many people end up having to file their taxes on their own, especially if they have some difficulty understanding the complicated nature of the tax code. By hiring a tax preparation professional, you will be ensuring that you get everything done on time and without mistakes, so you can start planning on how you are going to pay for all of your financial obligations!
3. Small Business Tax-Saving Tips
One of the many tax tips for small business owners is to open a savings account. By saving in a savings account, you are protecting yourself against future medical expenses and protecting your family’s future savings as well. You may also be able to deduct your medical expenses related to your illness, or expenses that were related to caring for a child who is seriously ill or disabled. However, it is important to remember that there are limits to the amount that can be put into your savings account each year. You must know the cap each year by April 1st, if you wish to take advantage of this savings tip.
If you have any capital gains from stock sales, or sales of non-domestic property, you must report these transactions on your personal income tax return. For most investors, one of the best tax tips is to make sure to keep track of all of your gains and losses, both real and personal, so that when you file your income tax return you have a complete accounting of all of your financial assets. If you have a mutual fund account, you can easily file your returns and take advantage of this valuable tax tip. By paying dividends to your mutual fund, you can deduct your share of the investment.
Another valuable tip for small business owners is to invest part of your taxable income during the tax season. By investing part of your taxable income, you will be able to lower your taxes because you will be investing less money each year, making your taxable income greater in comparison. Although many small business owners do not want to take this much time off of work, they should be sure to use every advantage they can in order to lower their taxes as much as possible.There are numerous other small business tax tips that can help you throughout the tax season, including things like how to handle your refund. In some cases, you may even be able to receive a refund from the IRS if you invest a certain amount of money within a specified time period. There are also several tax breaks that apply only to certain categories, so be sure to learn about which category you fall under in order to take full advantage of the various available deductions and rebates. Small business owners who are responsible for filing their own taxes must also be aware of all of the tax tricks and tips, as well as the ones that apply to them, so that they know exactly where their money is going.
