It’s that time of the year again and we have a few tips that will help you prepare.
- Keep Accurate Records
- Regardless if you file on your own or have a professional file for you, you must keep accurate records. These include receipts, invoices and bank statements. The more organized you are, the better. It is easier to keep with it throughout the year than try to sort through everything at the end of the year.
- There are software programs that help you maintain your records, so you can just run a report at the end of the year. Or you can choose to organize by hand, using envelopes, shoe boxes anything that you can separate your records by month.
- Track Payments to Contractors
- If you paid anyone for work last year, you are required to keep track of those payments
- For anyone you paid at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, you will be required to issue them a Form 1099 MISC. You can E-File your Form 1099 MISC using ExpressTaxFilings.
- Know Your Tax Rates
- The 2% Social Security reduction is now eliminated making the current Social Security rate 6.2%. Make sure you are aware of current tax rates; consult a tax professional for advice.
- Know What Tax Deductions You Qualify For
- There are countless tax deductions that small business owners such as you can take advantage of. You do not want to miss out on these because you are unaware. We recommend consulting a tax professional to ensure you take advantage of everything that is available to you.
- Hire A Professional
- We highly recommend consulting a tax professional regarding your taxes. They will be able to accurately advise on what you can and cannot do, which will could save you a lot of time and money.
- File A Tax Extension
- If you are not properly prepared by the tax filing deadline, E-File a Tax Extension. It is quick and easy with ExpressExtension and depending on which type of extension you need to file, the extension will allow you an additional 3-6 months to file your tax return.
- Please note: a Tax Extension DOES NOT extend the time to pay your taxes. The IRS still expects full tax payment of any taxes due. Failure to pay the taxes by the due date may lead to penalties and/or interest.
ExpressExtension is an authorized IRS E-File provider and while we do not give tax advice, we do want to make our customers aware of common questions that arise during tax season. Please contact a tax professional for tax advice and questions pertaining to tax laws.
If you have any questions about filing Tax Extensions, you can contact the Express Tax Support Center in Rock Hill, SC at 803-514-5155 between the hours of 8am – 6pm EST, Monday through Friday or email support@ExpressExtension.com.