Tax Season is fast approaching. Have you filed your taxes? Didn’t think so. But hey, if you are looking for best tax preparation services, choose MyTaxFiler which is one of the leading tax filing services in Irving.
If you are a small business owner, you need to know more than knowing your product and your customer. You also have to manage your expenses, deal with payroll for employees, and keep all of your federal, state, and local tax information straight. Taxes are confusing, mind-boggling and just a lot of work. So business owners, let a professional handle their taxes. And when you finally get around to organizing things, consider these helpful tips below.
Whether you plan to work with a professional tax consultant or are confident in your own tax filing abilities, you should take certain steps to ensure your financial future.
Below are some of the small business tax tips to help you get through tax season, now and in the future.
- Keep Good Records and Understand Available Deductions
Keeping track of your sales data and other expenses year-round are the first step to ensure taxes are filed accurately. Save important paperwork which can be used for backup deduction claims, if there is an audit in the future. Keep it in mind that tax credits and deductions change each year.
- Avoid Common Audit Traps
As a small business owner, you should be aware of potential red flags which could include:
- Classifying Employees as Independent Contractors: Independent contractors and employees are not the same and it is important to understand the difference. In the eyes of the IRS, misclassification can be seen as an attempt to avoid payroll taxes; non-compliance can bring penalties and back taxes.
- Home Office Deduction: This deduction is very specific and not all home-based businesses qualify. Know how to determine if you are eligible to claim this deduction and what specific expenses may be deducted. For any queries contact our tax filing service in Plano (972)-961-4814
- Miscellaneous Deductions: If you claim a large amount of itemized deductions or miscellaneous expenses, relative to your income, the IRS could get suspicious. Be specific and label every deduction.
- Keep Business and Personal Expenses Separate: The IRS scrutinizes personal expenses that may have been claimed as a business expense, such as the use of a business vehicle, for personal use. Maintain separate bank and credit card accounts for your business and personal use. Be diligent about keeping good records.
If you are looking for a tax preparation services in Irving or Plano, choose MyTaxFiler.