Tips to Help You Prepare For Tax Time

It’s that time of the year again and we have a few tips that will help you prepare.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

Filing A Tax Extension Does NOT Extend Time To Pay Taxes

E-Filing a Tax Extension is quick and easy with ExpressExtension. 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.

However, a Tax Extension DOES NOT extend the time to pay your taxes. The IRS still

expects full tax payment of any taxes due by the required deadline. Failure to pay the taxes

by the due date may lead to penalties and/or interest.