If you want to be able to concentrate on driving your business forward without any interruptions or problems, it is important to get your taxes sorted out and deliver all your figures on time.
If there is one aspect of running your own business that can cause you stress and financial headaches it is trying to understand what you can and can’t do from a tax perspective and how to make the most of what you are entitled to.
Here is a look at the advantages of preparation, keeping up to speed with deadline dates, how to make the most of your charitable donations, plus details of healthcare options and why it could pay to give an unemployed military veteran a job.
Start early to save tax
If you are trying to make sure you pay just the right amount of tax and make the most of your deductions it can pay to get some IRS Help so that you can get some assistance from someone who knows how to cut through the jargon and comprehends all the rules and regulations.
One of the best tips you are likely to hear when it comes to getting your taxes in order is to start organizing your receipts and other expenses right at the beginning of each year and then continue with that disciplined regime right up until it is time to get ready to file your taxes.
It is so easy to overlook certain expenses and other potential deductions when you are trying to add it all up together at the end of the year. Keep track of everything and get yourself organized so that when the time comes, most of the prep work has already been done.
Know your deadlines
If you don’t meet specific filing deadlines you not only risk the prospect of being fined for your perceived tardiness and may have to pay penalties and interest charges, but you could also gain the attention of the IRS who will want an explanation.
It is much better to know your filing deadlines and do everything you can to meet those critical dates in the diary.
You should be aware that some changes to filing deadlines have recently taken place.
Due dates for C-Corporations have now been changed to April 15, but partnerships and S-Corporations have moved forward a month to March 15 from April 15, so make sure you don’t get caught out by these.
If you do miss the deadline dates, you can request an extension and make an estimated payment to the IRS.
Maximize your charitable contributions
If you make regular charity contributions throughout the year you will no doubt be aware that you are able to deduct the amount donated, but there is an efficient way to make the most of your generosity.
If you donate appreciable stocks rather than money this opens up the possibility of being able to deduct the current worth of the stock rather than the amount that the stock was originally purchased for.
In simple terms, if you donated one share of a stock that was worth $150 at the time but is now valued at $200, you can deduct the higher amount at tax time.
Health credit advantages for small business owners
If you run a business that has less than ten employees and their average wage is under $25,000, these are the perfect conditions for making the most of the healthcare tax credit.
It is always a good idea to get some professional help when trying to claim deductions in the most efficient way, but the starting point is to use form 8941 to calculate your eligibility.
In basic terms, you might find you are able to carry the credit for that year forward if it turns out that you don’t owe taxes for that year, or you might be able to claim business expenses against it.
This is especially worth looking into if you are a small business with only a few employees.
It can pay to offer a helping hand
If you are looking to expand your business and want to hire someone new, there are some decent incentives available if you want to give someone a job who has been long-term unemployed or is a military veteran.
The Work Opportunity Tax Credit has recently been extended to add a further 40% credit up to the first $6,000 you pay to workers who have been out of work for 27 weeks or longer.
Running a small business can be very rewarding and if you get to grips with all the tax options and get some valuable insights from professionals who deal with taxes for a living, it doesn’t have to be such a challenge.