Filing Your Taxes In February: 4 Smart Tips
If you plan on filing your taxes in February, you are already ahead of the curve. Especially if you own a business, we tip our hats to you for filing early! That said, there are still plenty of missteps you can take throughout the filing process that could cost you time and money. Luckily, our tax pros are here to share some words of wisdom to help you successfully navigate filing season (and save some money along the way!) Continue reading for our top tax hacks.
Filing Your Taxes: The Personal Side
Although filing season is a yearly reality for all of us, the challenges faced by business owners will not be the same as those faced by individual taxpayers! So, to start, we will cover our top two golden rules for individuals filing in February.
1. File Electronically
Especially after the major changes that took place throughout this past year, filing your tax returns electronically is one of the best things you can do as an individual taxpayer. Not only does electronic filing facilitate a smoother and speedier process, but usually results in a quicker delivery of any refunds. In addition to filing electronically, we recommend arranging for your refund to be delivered via direct deposit. This will also help expedite the arrival of your refund! If you plan on enlisting the help of a tax advisor for your filing, look for someone who utilizes an electronic bookkeeping and filing system. While working with a tax pro will take a lot of the work off of your shoulders, choosing an advisor with an electronic bookkeeping system will help you keep track of your hard-earned money!
2. Check Your Filing Status
As an individual taxpayer, choosing the correct filing status is integral to submitting a successful tax return. Simply put, the status you choose can determine the amount you owe. There are 5 filing statuses to choose from. A filing status of “Single” applies to anyone who is unmarried, including those who are legally separated or divorced. There is also the option, “Married Filing Jointly”. If you have tied the knot since your last tax return, this will be an important change to your filing status. Married couples can also choose “Married Filing Separately”, if it makes more financial sense. You’ll likely want the help of a tax pro if you think you’re eligible for a “Head of Household” or “Widow(er) with Dependent Child” status, as these can be trickier to determine.
When More than Your Filing Status Changes
Major life events change more than just your filing status. We can help you with tax planning through each new chapter!
Filing Your Taxes: The Business Side
Now that we’ve covered some pro tips for the individual taxpayer, it’s time to get to the business side of filing season! If you own a business, these next 2 tips will help you immensely during tax filing season.
3. File Your Self-Employed Payroll Taxes
In today’s world, there are countless ways you can structure your business. With the freedom to structure your business however you see fit comes the burden of more complex tax responsibilities. That brings us to an often-overlooked factor for business owners: self-employed payroll taxes. This is an area that can evade fledgling business owners and tycoons, alike! If you are unsure as to where you fall, it’s a good idea to find a knowledgeable tax advisor who can help you wade through the details and prepare you for filing season!
4. Consult a Tax Pro
Ultimately, the smartest thing you can do as a business owner is finding the right tax advisor. Growing your business is half the battle – sustaining that growth takes careful tax planning, beyond filing season. The right tax advisor will be able to help you with year-round tax planning that will help you reduce what you owe and ensure you remain compliant. Furthermore, the amount of time and money you spend on bookkeeping and filing could be re-claimed when you hand off all of that extra busy-bee work to a trusted advisor!
We Make Filing Your Taxes Easy
From your personal to business tax planning needs, our advisors have the experience, knowledge, and tools to meet them. We take the time to learn about you and your goals, and we strive to earn our place as a trusted advisor and consultant. If you are ready to make 2021 your year, start by working with our tax team! Give us a call at (972) 771-6707 or visit our website!
Filing Season Made Easy
Whatever your tax needs are, we have the solutions to meet them! Take your next step toward becoming a Lifetime Tax client by clicking the “Learn More” button below.