The new year is finally here, which means it’s time to start planning your income tax returns. As stressful as this season can be for everyone, small business owners and self-employed workers face unique challenges. Collecting the documents and records you need in advance will not only make things easier on your accountant, but it can also reduce your tax burden by ensuring you get every deduction you qualify for.
3 Records to Collect for Tax Season
1. Earning Statements
Employees of a single company can just wait for their W-2, but things are a bit more complicated for business owners and contractors. Throughout the year, keep a record of your gross receipts, and keep them organized in case the IRS has any questions about your income. Independent contractors should keep any 1099s they receive, as well as copies of all your invoices.
2. Expense Receipts
Keeping all receipts for deductible expenses can reduce the stress of tax time. Throughout the year, keep records of any business-related purchase you make, from office supplies and new equipment to travel expenses and marketing costs. Self-employed workers should also keep receipts for gas and mileage records for any business-related trips in your private vehicle.
3. Tax Records
If you pay quarterly income taxes, file away the paperwork and hold onto it for tax season. Your accountant will also want all records of payroll taxes you’ve paid throughout the year to ensure you’re in compliance with IRS codes.
Tostrud & Temp, S.C. employs a team of qualified accountants and offers a comprehensive range of services to businesses throughout the La Crosse, WI, area. With over 35 years of experience and in-depth knowledge of the constantly changing tax code, you can rely on their team to make filing your returns easy and stress-free. Visit their website for an overview of their services, or call (608) 784-8060 to make an appointment with an accountant today.