Up to date March 29, 2018
Spring has sprung. Right here in Atlanta which means grills are being fired up, baseballs are being tossed … and no person actually needs to consider Uncle Sam’s largest earnings tax deadline looming simply across the nook.
However the introduction of spring means Tax Day 2018 is upon us. We have to get our earnings tax submitting became Uncle Sam by April 17 or threat fines and penalties. (Wait, why April 17, you ask? As a result of April 15 falls on a Sunday, and that Monday, April 16, is Emancipation Day, a Washington D.C. vacation.)
As somebody who has handled earnings tax as an worker and as a enterprise proprietor, I’ll simply come out and say that submitting taxes as a enterprise proprietor is rather more difficult. As an worker, you get your W-2s within the mail, plug some numbers into tax type 1040, and also you’re finished.
As a sole proprietor or company, you not solely have that infamous Kind 1040 to take care of, you additionally should cope with self-employment tax kinds like Schedule C and Schedule SE, to not point out wrangling all of the business-related deductions you possibly can take. It’s no marvel that many people put this making an attempt activity off till the final minute.
However should you’ve delay your taxes till now (and consider me, I’ve been there) listed below are a number of ideas for getting your earnings tax paperwork straight by April 17.
4 last-minute earnings tax ideas
Collect up your earnings.
Calculate all your enterprise bills.
File for an earnings tax extension.
Let’s have a look at every tip in additional element.
1. Collect up your earnings
Decide how a lot you made in your enterprise this yr. For service suppliers, how a lot did your prospects pay you? In the event that they despatched you type 1099-MISC, collect these up and examine them towards your personal information.
For product sellers, how a lot did you gross in earnings from gross sales? You’ll want to report each penny of earnings, or Uncle Sam would possibly come calling. This contains every little thing you grossed, such because the delivery and dealing with that you simply charged your prospects, and even any funds for merchandise that you simply later refunded. However don’t fear, you possibly can deduct all of these prices after we get to …
2. Calculate all your enterprise bills
Discovering and documenting your whole enterprise bills is usually the most important chore of all on the subject of submitting earnings tax.
Uncle Sam requires that you simply doc each expense, and which means ensuring you have got your whole receipts for each single paperclip.
To not point out a number of the most profitable small enterprise tax deductions are additionally a number of the most complex. The house workplace deduction requires compiling a number of bills and calculating percentages (yikes!) and the auto bills deduction requires intensive report conserving that you must begin proper in the beginning of the yr. You don’t wish to depart all these deductions on the desk, however calculating them on the final minute generally is a nightmarish expertise!
However simply as you must report your whole earnings in order that Uncle Sam doesn’t come calling, you also needs to report your whole bills so that you simply don’t pay out an excessive amount of in taxes. Hold that cash in your pocket to develop your enterprise!
3. Get assist
Are you observing a giant field of receipts and a stack of 1099-MISC kinds? GoDaddy has your again. GoDaddy On-line Bookkeeping will join along with your checking account, enterprise bank cards and the eCommerce platforms you promote on. We’ll pull in your earnings and bills, and even categorize them for you. On the finish of the yr, all you need to do is click on over to the “Taxes” tab and we’ll current you with a tax return-ready Schedule C. Save hours in your taxes and cease tearing your hair out!
In case you’re nonetheless confused about taxes even after signing up with GoDaddy On-line Bookkeeping, you do have yet another choice …
4. File for an earnings tax extension
In case you’ve tried your hardest and nonetheless can’t get your taxes prepared by the April earnings tax deadline, you possibly can play your “get out of jail free” card and file a tax extension. The IRS will grant taxpayers an additional six months to file taxes, and all you need to do is both file IRS type 4868 or use a service like FileLater to file on-line.
Extensions are virtually at all times robotically granted.
There’s one caveat, although. The tax extension provides you extra time to file your taxes however no more time to pay your taxes. So you must nonetheless estimate how a lot you owe in taxes and make a cost. When you’ve completed your calculations you’ll both pay Uncle Sam just a little extra (plus a small quantity of curiosity and penalties) or get a refund.
It doesn’t matter what occurs, submitting an extension is at all times higher than merely submitting your taxes late. Even the IRS itself says that the failure-to-file penalty is usually larger than the failure-to-pay penalty.
Tax time isn’t anyone’s favourite time of yr, however it doesn’t should be painful. We hope these earnings tax ideas have helped make your tax time just a bit much less taxing!
The above content material shouldn’t be construed as authorized or tax recommendation. At all times seek the advice of an legal professional or tax skilled relating to your particular authorized or tax scenario.