Everyone dreads tax time, as evidenced by the number of people that wait until the last minute to file. Waiting until the deadline can be a costly mistake for individual filers and those that operate a home or small business. There’s an increased risk of mistakes, missing a deadline, and you may not catch deductions and credits for which you’re entitled.
You need to start thinking of tax time long before you’re ready to file. That means keeping and organizing receipts. Keep bills and receipts in folders according to type. If nothing else, at least keep them in a box. It will be a mess for you or a tax preparer to decipher, but worth it. If you utilize the services of a tax professional, you’ll typically have been sending them your receipts, which makes the process easier.
Know Your Obligations
There are plenty of resources online that provide all the information you’ll need for your individual circumstances to file local, state and federal taxes. Bear in mind that you could be audited at any time.
Credits and Deductions
Whether you’re an individual filing your taxes, operate a home business or a gig worker, there are numerous tax credits and potential deductions for which you may qualify. They can reduce your taxable income, the taxes you pay, and could place you in a tax bracket where you’ll be taxed at a lower rate.
Completing your taxes can be much easier with tax software. You’ll still need to keep track of your receipts, but tax software can make it easier to track expenditures and income.
A tax professional is well worth the money, especially for those with a home or small business. The professionals use software that’s highly specialized and sophisticated. They’re also cognizant of the constantly changing tax laws and can provide strategies for saving.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!