2017 Top Tax Preparation Tips for Small Businesses

It is tax season, and small business taxpayers are looking for ways to save money, and maximize deductions and credits. It is the right time for small businesses to decide what they want to achieve next year and how they can minimize tax liabilities. Tax time comes with an urgency and pressure, and small businesses are vulnerable to mistakes.  Paper traits can go awry, tax deductions can go unclaimed and costly surprises can result etc. It is always better for a small business to hire some small business tax preparation service. To get you started, here are few important tips you can take in order to maximize your tax benefits:

Maintain separate accounts for business and personal expenses

Many small businesses merge their business and personal accounts. It can cause a big confusion around tax time, making it difficult to track expenses and incomes. Luckily, you can avoid this problem with a little care up front. If you operate a small business, make sure to maintain separate bank accounts in your business’s name and prepare regular accounting statements for evidence including balance sheet, income statement, cash flow statement etc.

Keep a proper record of business expenses

A good and careful documentation is critical for justifying many deductions from income. Small business common deductions are entertainment, travel, meals, charitable donations, health insurance, start-up expenses etc. It is significant to get all these records in a good shape. Keep a diary to record all the entertainment expenses, including the amount, purpose, date and place. For travel expenses, you should keep a trip log separating personal and business use.

 Avoid tax preparation mistakes

Small businesses do a lot of tax mistakes and it is important to mitigate those mistakes. A big mistake that business owners make is to limit their deduction to mileage. If you can prove that these all are business expenses, you can deduct the cost of oil, insurance, tires, lease payments and parking fees In addition, don’t forget the small expenses. Whether it is magazine subscriptions or education classes, make sure to track all your expenses and consult your tax advisor about what you can or can’t deduct. Moreover, don’t forget about your other tax obligation such as local taxes, payroll, property, self-employment taxes etc. These all can hurt you if you are not compliant in a timely manner.

Avoid becoming a victim to scams

Tax season is the time when small business taxpayers are vulnerable to scams. One of the most common tax scams involves a call, text message or email from an unknown who claims to represent the IRS. But in reality, IRS doesn’t contact taxpayer about such matters. The motive of this scam is to collect money. In addition, it always better to keep all communication secure between tax preparers and their clients. Some scammers may attempt to intercept this communication to steal sensitive information. So if you are sharing some information related to your taxes with any person, make sure that the communications are kept secure from scammers.

2017 Top Tax Preparation Tips for Small Businesses

It is tax season, and small business taxpayers are looking for ways to save money, and maximize deductions and credits. It is the right time for small businesses to decide what they want to achieve next year and how they can minimize tax liabilities. Tax time comes with an urgency and pressure, and small businesses are vulnerable to mistakes.  Paper traits can go awry, tax deductions can go unclaimed and costly surprises can result etc. It is always better for a small business to hire some small business tax preparation service. To get you started, here are few important tips you can take in order to maximize your tax benefits:

Maintain separate accounts for business and personal expenses

Many small businesses merge their business and personal accounts. It can cause a big confusion around tax time, making it difficult to track expenses and incomes. Luckily, you can avoid this problem with a little care up front. If you operate a small business, make sure to maintain separate bank accounts in your business’s name and prepare regular accounting statements for evidence including balance sheet, income statement, cash flow statement etc.

Keep a proper record of business expenses

A good and careful documentation is critical for justifying many deductions from income. Small business common deductions are entertainment, travel, meals, charitable donations, health insurance, start-up expenses etc. It is significant to get all these records in a good shape. Keep a diary to record all the entertainment expenses, including the amount, purpose, date and place. For travel expenses, you should keep a trip log separating personal and business use.

Avoid tax preparation mistakes

Small businesses do a lot of tax mistakes and it is important to mitigate those mistakes. A big mistake that business owners make is to limit their deduction to mileage. If you can prove that these all are business expenses, you can deduct the cost of oil, insurance, tires, lease payments and parking fees In addition, don’t forget the small expenses. Whether it is magazine subscriptions or education classes, make sure to track all your expenses and consult your tax advisor about what you can or can’t deduct. Moreover, don’t forget about your other tax obligation such as local taxes, payroll, property, self-employment taxes etc. These all can hurt you if you are not compliant in a timely manner.

Avoid becoming a victim to scams

Tax season is the time when small business taxpayers are vulnerable to scams. One of the most common tax scams involves a call, text message or email from an unknown who claims to represent the IRS. But in reality, IRS doesn’t contact taxpayer about such matters. The motive of this scam is to collect money. In addition, it always better to keep all communication secure between tax preparers and their clients. Some scammers may attempt to intercept this communication to steal sensitive information. So if you are sharing some information related to your taxes with any person, make sure that the communications are kept secure from scammers.

Top 4 tax tips for Newlyweds

Have you recently gotten married or going to marry in a couple of months? Marriage is one of the life’s major milestone and its changes everything. From saving and investment to tax filing status and how much tax you pay, it changes almost everything. It’s a new adventure, so we bring some tax tips for newlyweds which can help to make a good planning of their future. If you are married and looking for taxes online Brentwood, here are top 4 tax tips to file your taxes easily.

Use the right filing status

As a married person, you will have to decide whether to file separately or jointly.  Married filing jointly means you will have to file one tax return for both spouses. It’s almost always better off filing jointly because it’s easier and you’ll probably pay less tax too. Moreover, you only have to pay one tax, and you don’t have to decide who takes each deduction.

Opposite to it, filing separately means each spouse will file their own return. It’s good when there is a big difference in their individual incomes, that’s why some couple prefers joint separately because they like to keep their fiancés separate. In a few cases, you may pay less tax by filing separately due to state tax laws.

When you file taxes online Brentwood with Taxcare, we’ll help you decide which filing status is best for you.

Update Name and Address

You want to make sure that your names and social security numbers and other tax forms should be updated and come to the right place. Your tax return form should match your social security administration records. In case you have changed your name, report the change to the SSA. You need to file Form SS-5, application for a social security card. You can get this form on SSA.gov website or simply visiting your local SSA office.

Similarly, if you address has change, file Form 8822, change of address to notify the IRS. In this case, you should also notify the U.S postal service. You can report the change at your local post office or can ask have your mail forwarded online at USPS.com.

Avoid having too much or too little withheld

One of the most important things you should do after you get married is file a new Form W-4 with your employer. There are too many factors that can affect your tax liability, so it’s not a good idea to guess when you’re filling out your FormW-4.

You may need to have too much or too little income tax withheld; it’s not likely to stay the same. It’s important to make sure you’re having the right amount of tax withheld from your pay. You can use the IRS withholding calculator to estimate just how many allowances to claim on your W-4.

Estimate your taxes

Your tax will not surprise you if you estimate them ahead of time. As a married couple, you think more about future and how to manage all your finances. By running some basic information about your finances through an estimator, you will get an idea about the amount you’re expected to pay in taxes or how much you’ll get back as the refund.  If you are also going to pay taxes online Brentwood this year as a married couple, it’s worth extra time to be prepared. You can consult some local tax services such as Taxcare who can help you to estimate your taxes and file them effortlessly.