Money-saving tips for this tax season!

We know tax season is super stressful for a lot of people, especially business owners! On top of running their business, they have to worry about getting all of their paperwork together in order to file their tax return. We understand first-hand how overwhelming this can be, and that is why we are here outlining our favorite tips for tax season.

Here is a list of a few tips that will help lower your tax bill and save you some $$$.

Consider taking the home office deduction

Consider taking the home office deduction. If you use a space in your home exclusively for your business, you may be eligible to use this deduction. The home office deduction allows you to deduct a portion of the expenses related to the business use of your home, such as rent, insurance, utilities, and repairs. If you would rather not keep track of all your expenses, you could opt in to using the simplified method which is basically a standard rate of $5 per square foot of home used for business (up to 300 square feet)

Contribute to your retirement accounts.

One of the key tax savings tips for this tax season is to increase the amount contributed to your eligible retirement account before the tax deadline. Not only will this decrease your tax bill, but it will also allow you to save money for your retirement. The 2021 IRA contribution limit is $6,000, or $7,000 if you’re 50 years or older. If you’re self-employed, the maximum contribution for 2021 is $58,000 for SEP. SEP contributions are not subject to federal income tax withholding, social security, Medicare, and federal unemployment (FUTA) taxes.

File and Pay your tax return on time

This might seem like an obvious one, but it is one that a lot of people seem to overlook. The tax deadline for your 2021 tax return is April 18, 2021. If you need more time to gather your documents and file your return, you will need to fill out Form 4868 by the deadline for an automatic 6-month extension. However, this only grants you more time to file your taxes not to pay your taxes, which means, your tax liability must be paid by the deadline in order to avoid penalties and interest.

Hire a tax professional

In order to make sure you are taking all the deductions you are entitled to and that you get all your questions answered, you need to hire a tax professional. Hiring a professional ensures that you eliminate errors and that return is prepared correctly. If you need help filing your taxes, schedule a discovery call HERE. We look forward to speaking with you!