It won’t be long before you have to file your taxes again, but rather than it being a dreaded task, you could actually use this as an opportunity to save more money. Filing taxes is never going to be an enjoyable job, however, there are many ways in which you can obtain deductions and help you to make a saving.
With this in mind, here are some top tips that will help to make filing tax for your business easier.
Review Your Documents For Last Year First
Before you do anything else, take a look back through all the documents from the last tax year to ensure everything has been correctly reported. If you spot any issues, you can address them now rather than waiting.
Consider Investments Requirements
When you’re reporting earnings from investments, you need to be well-organized. You’re required by the IRS to report dividend and interest categories separately. You’ll find this information more easily if you keep your earnings statements in a convenient location from each investment account. Annual statements may have all the key information on them, but it’s still a good idea to keep your quarterly or monthly statements within easy reach, just in case.
Remember Charitable Donations
Making charitable donations can be an effective way of reducing your taxable income in any given tax year and, as an added bonus, you’ll be helping others. Charitable contributions have to be made to a qualified organization to receive a tax deduction, and the deductions must also be itemized. You’ll also require a written communication or bank record from the charity including its name, the date and amount of the contribution. If you’ve donated property too, this may also count.
Include Your Medical Expenses
If you have documentation to back up medical expenses claims, you can obtain a tax deduction here. Unreimbursed medical deductions must total over 10% of your adjusted yearly income, however with the right records available you could possibly claim your travel costs from and to your treatments and appointments, insurance payments from any income that has been taxed already, any medically necessary items which have been prescribed by a doctor, costs linked to rehabilitation treatments for controlled substances and medical treatments that are not covered by insurance. It’s essential therefore, to keep a track of those records through the year so everything you require to file your taxes will be in a single location.
It has been known for fraudsters to file a fake return in an individual’s name before they have had the chance to file their own taxes. This allows the fraudsters to collect the refund. You can protect yourself from fraud by filing your tax return quickly.
Get Professional Help
If you need help with your business strategic tax planning, Global Resources LLC is on hand to offer expert advice and assistance. Contact us today to find out more about how we can help you to get as much as possible from your tax return.