Filing your taxes by yourself may be good in some ways, but you’ll find that it can be a headache once you actually start doing it. However, there are ways for business owners such as yourself to find quick and organized ways to file your taxes. Most employees only have to deal with their W-2.
For business owners it is a different case. Most business owners should be aware of the dates of submission for tax reports. Those that are incorporated and file on a yearly basis for corporate tax returns are to submit your reports on or before March fifteenth, while as those who are in a partnership, sole proprietorship and are not incorporated must submit their tax reports on or before April 17.
You don’t have to worry about missing the deadline, but if you have then you may file for an extension but it would be best to get your taxes done on time. Last minute filing and handling of taxes usually resort to many errors in your tax return and you may even forget important deductions that you could have cashed in on. Here are a few steps to follow when getting your tax return done.
Get Your Receipts Together
First thing to do is to organize and collect all your receipts. It is good to collect all your receipts and make a list out of these to avoid any duplication and for you to be able to see which has deductions that could save you money. Check your credit card statements, receipts and cash register for all purchases and receipts available. Do not forget to check purchases of the receipts made at the end of the year as these are deductible even if to be paid by next year.
A lot of people have a space at home that is solely for work. This is good because most people are not aware of home office deduction. The home office deduction is applicable to those who pass a series of questions that are connected to people who file for a deduction because of work at home. This deduction is good for those who work at home and have an allotted space and area for this.
A lot of people should be aware that they can actually file for auto expense. This is applicable for those who have their own vehicles and use this to visit clients, go to meetings and other work related travelling and moving around. Add this to your tax return and you can get a good deduction on the miles driven.
If you have already completed your tax return and it is still a lot then you can consider a small contribution to IRA. You can also contribute to one of these, the SEP or SIMPLEs. This way you will be able to save up for your retirement and you will be able to deduct a whole lot more from your tax bill.
Other ways you could save money is by hiring your children to work for you at your company. You can do this by claiming that they are dependent and working for you before they even have tax returns. And a good thing here is that children that are hired or employed and working for their parents are not subject to paying any social security fees and any Medicare taxes if the business is a sole proprietorship or even a partnership. This is a good way to save money and kids can learn as well.
Lastly, it would always be best to get ready and pay the estimated tax fees that are needed. You see, unlike employees that have income taxes deducted from their salaries, business owners do not have this. In order to avoid paying for sanctions, penalties and additional charges, it would be best that you pay your estimated taxes. TurboTax Home and Business Software will ask if you want to get the estimated payments needed for your income tax so that you may pay these before filing your tax return is required.