Prepare for Tax Season
How to Prepare for Tax Season at Your Office
Are you scared of the “t-word”? Many people, especially those who own their own small businesses, have a bad habit of getting scared of tax season and ultimately putting it out of their mind.
While this might grant you a temporary peace of mind, it will come back to bite you. Taxes aren’t something that can be put off forever and the longer you do, the more you will pay for it in the end. Don’t let taxes scare you! There are plenty of ways to prepare for tax season with the help of Admin Solutions Business Center. If you start prepping the moment the year starts, you will be in a better position to file come next January. Follow these simple steps to make your filing easier.
Save Tax Forms to Help Prepare for Tax Season
Start off by designating a space or file to save tax documents as they come in. This includes W-2’s, 1099’s, or anything else you may receive. Don’t delay when they come in the mail, take them directly to where you are keeping them. This will eliminate any chance of them being lost or thrown away. It can take you hours to track these down when you sit down to file if they were not put in the proper place at the beginning. If you are worried about losing these forms, Admin Solutions provides an affordable mail drop and can keep track of those for you! Check out our essential business services.
This tip doesn’t only apply to official tax documents. Create space for any other papers you may need to file. Saving receipts can be invaluable to you when it’s time to write off your expenses. If you’ve thrown them away or have them scattered around the house, you probably won’t remember to check for them. Saving them in one spot will help you to easily sort when the time comes.
Choose how to Prepare your Taxes
Have you taken the time to sit down and decide how or who is going to prepare your taxes? In today’s age of technology there are several different options. The first question to decide is whether or not you will prepare and file yourself. If not, who are you going to use as a preparer? Do you have somebody who you have used in the past? Do you want to use a firm like H&R Block or a private professional?
If you have the expertise or your taxes are simple enough to file yourself, how will you choose to prepare? If you’ve done this before, it may be worth it to file manually and save the cost of using a software. If you decide to use a software, check out The Simple Dollar’s review of the best softwares for 2015.
Revisit your Filing Status
Most changes, large or small can affect your taxes and how you file. Obviously, the larger the change the more your status will change. Most people remember the big questions; did you get married, did you move, did you have a child, did your child move out, did you buy a house, did you get a new job? You don’t want to forget the small changes that could affect your tax return those. For instance, did you have any medical expenses the past year or buy something expensive for your job?
You need to make sure that you think through these questions each year when you file. Another important question that is important for your filing status is whether or not you are claiming dependents. If you have children that are transitioning into adulthood, this can be a grey area. Make sure that you check every year if you should be claiming people as dependents or not.
Contribute to your Retirement Accounts
This tip may seem like one that only affects you at the beginning of the year, but it certainly is not! If you are filing for 2015, you have up until April 15th of 2015 to contribute to your Roth or Traditional IRA accounts. You can only add to these accounts
File an Tax Extension
If you’ve repeatedly gone past the April 15th deadline or crossed over it once or twice, you are not alone. Sometimes that are extenuating circumstances that you can’t control that push you past and sometimes you just simply can’t make it. If you are finding yourself in this spot, don’t be afraid to file an extension! Filing an extension is easy and will save you money by avoiding fees. You will usually have to still make a payment that is equal to an estimate of what you owe, but will eliminate penalties while you try to finish things up.
If all of this still seems daunting, don’t worry. You aren’t alone. At Admin Solutions, we are committed to helping you navigate through tax season with as few issues as possible. We will stay by your side from sorting and entering receipts to mailing out tax forms in January. Contact us at 952-892-5909.