It’s Tax Season and you know what that means. Time to empty out that shoebox packed with receipts, Pull those accordion files out from under that stack of papers in your night table drawer, put all those digital receipts in their appropriate folders. We all have lots to. I thought I’d share some tips and tools to make this tax season…Less Taxing…
Avoid the Business/Personal Mix up
Business owners, like many out there you continue to throw your personal and business expenses into the same hat. This only makes it more difficult to separate them. It’s a new year. Make a resolution that 2014 and onwards will be the year to stop this bad habit. What you need is a business account for your business matters with a credit card that you use JUST FOR BUSINESS. Use your personal debit/credit card for personal stuff. Break the habit and make your tax preparation activities less of a hassle.
Where do you Stand Financially?
Yep. We are talking about your financial standing. Review it. What were your profits like? Your losses? Are your ledgers accurate? Make sure you have recorded all transactions. Do yo have any loans? If so, what was the interest? Log the principal and the interest separately in your books. Do you have any deadbeat customers? If so, ensure you write them off as a loss.
Use a Quick and Easy PDF to Excel Conversion Tool
If you conduct file transactions that generate PDF files, you know how using this format can help you organize those files; your W-2s, 1099s, stock trades, last year’s returns. However, much of the time you need to extract info in those files into excel files. All of a sudden those PDF files seem more trouble than they are worth. Hold on. They don’t have to be. There are many tools out there that do PDF to Excel conversion such as Cogniview which is widely used and recommended by small businesses and accountants for efficient and professional PDF to Excel conversion. It saves time with import and it’ll make your life a whole lot easier.
Calculate Your Salary Accurately
There are millions of people that end up paying the wrong amount when paying taxes. By using this nifty salary calculator, it enables you to figure out what your take-home pay is after income tax, your student loans, pensions, etc… It also allows you to compare this year’s taxes to years past.
File your taxes and pay them on time
The date to file is April 15, 2014. If you can’t make this deadline, be sure to file form 4868 by this date. You will be granted a 6 month extension to file your 2013 taxes. By filling out this form, you still need to make an estimate on how much in taxes you are liable for, and you need to pay the balance due with this extension request.
By making this extension request by the due date, you are covered and it is particularly important if you owe any taxes to the IRS. If you file your return and pay late, you’ll be hit with a bunch of late payment penalty fees. By filing the extension form on time, you’ll be absolved of paying the late filing penalty.
Filing electronically is highly recommended especially in cases where you are owed a refund. If your documents are all in order, it is recommended file earlier using the electronic option. There are many tax software programs that allow you to do this, such as Intuit’s Turbotax
It is estimated that you will receive your refund up to six weeks earlier than when filing the old fashioned paper way. If you specify an account to direct deposit into, such as a Bank Account or IRA, it will make the refund process even quicker.
There are way too many things you might need to do to file your taxes accurately and on time. We hope you gained some insight out of this post and the tips mentioned make your tax season..Indeed less taxing.