When tax time rolls around, you may feel a bit of pressure or sense of urgency. With these feelings in tow, mistakes are inevitable. You may leave deductions unclaimed, lose track of paper trains and as a result may face a number of costly, unpleasant surprises. One of the best ways to avoid tax time mistakes is by hiring professional tax preparation services in Edison, but some other tips can be found here.
Don’t Leave Out the Small Stuff
Educational classes, magazine subscriptions, petty cash purchases and more all add up. These seemingly “small” expenses can equal quite a bit by the end of the year. You should make sure to track all of your expenses and check with your tax professional to find out what is and is not considered deductible.
Don’t Try to Exaggerate Your Deductions
Hiring the professionals for tax preparation services in Edison will help ensure you don’t overdo or exaggerate the deductions you have. Doing this is going to raise your potential for an IRS audit. There are some small business owners who think they can deduct all of their meal costs while they travel and client gifts. However, these items are only partially deductible.
Separate Business and Personal
If you intermingle your business and personal bank accounts, it can lead to quite a bit of confusing come tax time. This will make it even more difficult to track your expenses and income. Also, if you are operating a home business, you need to keep those related items separate from the home so you can deduct them in the home office deduction you are allowed.
The best way to avoid mistakes when filing your small business taxes is to hire professional tax preparation services in Edison. This will help ensure you don’t have serious issues down the road.
Find out more about small business taxes by visiting the Work My Taxes website.