Do want a joyous 2014? I’m hoping the answer is yes, here are five ways to make that happen and properly prepare yourself and your business for the upcoming tax process. Take a look at these quick tips to get you there in a hurry.
Create Savings Goals- If you have any type of tax advantage savings account you ought to know what your contribution limitations are in order to avoid any penalties. This gives you the chance to calculate what amount you want to contribute and how often. The IRS provides income and contribution limitations each year which is a great time to set up any type of automatic deposits, also keep an eye out for the newly announced myRA retirement account.
File Taxes as early as possible- If you plan on receiving a refund you want to file your taxes as early as possible in order to avoid any delays in getting your money. Normally any time after February 15 the IRS tax process has long delays so if you have all of your documentation get that paperwork in early. Early filing also reduces your chances of anyone fraudulently claiming your tax refund.
Maintain Files- It’s a good idea to keep your files for at least seven years before discarding. Every year you want to create a new file to avoid any confusion for documents such as W-2’s, 1099’s, and year-end tax records. This way all of your tax documents can be organized for each year you file.
Ensure Accurate Calculations are Reported- Before filing your taxes you want to be sure that the withholding amounts are reported correctly. Review your W-4 for accuracy to determine that you have the correct withholding amounts. Click this link to use our IRS withholding calculator to assist you.
Timely Payments- If you are a business owner more than likely you’re responsible for making your own withholding payments. In that case you want to make sure the last payment made for the tax year that you file is before January 15.
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