Tax season is coming up and you may be hectically trying to go through all your receipts from the year. If you’re like most business owners, you will outsource your taxes to a trust account. This doesn’t mean that there isn’t more work you can do to make the process easier for yourself. Let’s face it, no one wants to have to find every receipt they had through a whole year to see where they stand. That’s why I’m going to give you some tips to make it easier for you next year; you can see it as a late New Year’s resolution.
1. Prepare ahead of time: By this I don’t mean, prepare in December, I mean prepare throughout the year. This will help speed up the process when tax season comes and it’ll also allow you to be aware of where you stand throughout the year. It’ll also help from the possible anxiety that you may have of not knowing if you’ve found everything.
2. Get the most from your deductions: You may look at deductions as rules that your taxes are done by, but this way of thinking needs to be thrown out. Look at them as incentives and make the most out of them. If you can a deduction for something get it. No need to miss an opportunity to get your money back.
3. Put your money in retirement: Money that is put into your retirement fund isn’t taxed until you start to withdraw it. That means your overall income can be taxed less depending on how much you put into your retirement. So, if you make $80,000 a year and you put $10,000 in your retirement fund then you’ll only be taxed for an annual income of $70,000. Before anything, check the local laws of the max you can put into your retirement account. You can check with your account too.
4. Use software or accountants: It may be common sense to you, but some people don’t take advantage of this. I know you may be the person who wants to do everything their selves so you save money but please don’t. Accountants do this for a leaving and will get you the most deductions possible. And you know what that means? The more money you get back from you refund! This is also the use of software. There’s tons out there. Look through them all and find what best fits you. Again, this is their job. They’ll get you more money then you will by yourself.
Now I know, and many other people know, that tax season is just dreadful, but with these tips it may make it a bit more bearable. I know it did for me. So, go out there, get an accountant, and get the most for your deductions this year!
Tax Season Tips