If you are a business owner, now is a good time to start preparing for the coming tax season.
Here are 7 tips to help you prepare:
- Check your estimated taxes against last year’s tax liability. If needed, adjust your estimated tax payments for the rest of the year to avoid underpayment. If you know you will owe money at tax time, set aside funds now to avoid having to pay interest later.
- Be sure you are up-to-date with your bookkeeping for the year. By reviewing your bookkeeping methods, you can stay organized which makes filing your taxes easier.
- Explore resources like the Small Business Tax Virtual Workshop and the IRS Self-Employed Individuals Tax Center.
- Learn more about the self-employment tax & tax deductions. If you have employees, remember that the Federal Unemployment Tax Act payments (FUTA) and State Unemployment Tax Act payments (SUTA) will be due at the end of the year as well.
- Take steps to reduce tax liability. You can learn more about filing & paying small business taxes here
- Learn about the Alternative Minimum Tax to reduce unexpected tax penalties.
- Check with your tax preparer or reach out to local organizations that can help if you have questions.
Life changes can impact your taxes! Changes to salary, marital status, buying a home, the loss of a loved one, large medical expenses, a new family member, and even retirement, are all life changes that can impact your taxes. It may seem early, but being proactive, as opposed to being reactive, will make you glad that you planned ahead.
If you would like to learn more about owning your own small business, check out our tuition-free workshops & classes!