In this article we will talk about things that are important to people who are trying to prepare their taxes, or are working with a professional. There are lots of questions to ask before doing anything, and there are lots of mistakes to avoid. The best first step is to get a free file assessment from an accountant and determine your risk level. We will look at these things and other important aspects of preparing your taxes.
If you have a lot of people to file taxes for, the easiest thing to do is use efile. It saves you a ton of time and money. I have always struggled with my filing, so if you know how to use it, I have two cents. For most people, this is a no-brainer.
Now, let’s talk about what you should be doing, and what you shouldn’t be doing. There are a lot of things you can do yourself, and things that your professional accountant will do. We are going to cover the things that I feel are the most important. I hope you like them, because they’re all good!
Forgot to file your taxes? Use one of our easy solutions!
If you forgot to file your taxes, use a filing service. There are many of these services on the internet and you can go through them and find the one that best fits you. I use a service called Filing for Free, and it’s great! They have all kinds of ways to file your taxes, so you should definitely check them out!
The most important thing to remember is you have to file your taxes by April 17th, or you will pay penalties and interest. Use an online service if you can. There are a ton of them out there. If you’re lucky, your accountant will remind you to do it before April 17th.
If not, use one of the many online services. There are a lot of them.
When you file, make sure you also remember to include all of your business transactions. If you’re a sole proprietor, make sure you include every transaction, even a credit card. I know when I first got my first credit card, I didn’t include it because I had no idea what the heck I was doing. If you’re starting a business, you need to have all the proper records.
I’m not a fan of H&R Block. I had a horrible experience with them a few years ago. I filed late, and it cost me $1000 to pay the penalty and interest. The accountant in charge of that was fired. It wasn’t his fault, and it cost him his job. H&R Block doesn’t know how to deal with situations like that. They are a big corporation with a whole bunch of legal issues behind them.
File, file, file your taxes. It’s important to file them in a timely manner, but don’t try to do the entire year at once. The last thing you want to do is forget anything.
Make sure you give yourself a generous tax deduction for filing your taxes. This means you should consider filing both your personal taxes and your business’s taxes at the same time. If you claim a business loss on your personal taxes, then you can’t take that deduction on your personal taxes. It’s really important to do this.
File as early as you can. If you wait until the very last minute to file, then you run the risk of missing a deadline.
The IRS has several tax-filing extensions available. You should try to get an extension as early as you can. If you’re a sole proprietor, consider filing for an additional four months. If you’re a business, you should file for an additional two months. Don’t ever leave it to the last minute.
Make sure you get your documents organized. Make a spreadsheet that includes all of your pertinent information. List all of your income, deductions and expenses.
You might want to consider consulting with an accountant. If you have to do everything yourself, you’ll end up getting it wrong. Getting it wrong isn’t always the end of the world, but it will cost you a lot of money in penalties and interest. A professional can do the work for you. Call (888)489-4889 for a free consultation on how to file your missing taxes.
Be honest about your personal tax returns. You have to be aware of all of the deductions and credits available. Be honest and tell your accountant about your deductions, so that they can help you maximize them.