Everyone’s favorite time of year is finally here—tax season!
Having started a new business, you might be worried that you’re going to owe a lot on your taxes. As the business hasn’t taken off just yet, you have a real fear that the tax cost of running it is going to bankrupt you. Simply reading the word ‘tax’ sends you spinning into high anxiety mode. Shh, chill. Take a deep breath and exhale slowly. Do this a couple of times, at least until your stomach begins to unknot itself. Okay. Things are going to be okay. Your taxes aren’t going to end you and your business, how do I know this? Because by asking the right questions, you can get a tax break.
Here are five questions to ask to catch a break on your taxes and get yourself some money back from the government.
- Should I do my own taxes to save money?
A: In an interview with Business News Daily, marketing consultant and small business owner Kristel Yoneda tells business owners that they should hire a professional to help them do their taxes. “My tax expert helps me maximize my deductions, fills out all the necessary paperwork and even reminds me to pay my estimated taxes on time. This kind of help is invaluable. It allows me to focus my energy on producing quality work for my clients than stressing out about my taxes.”
Your staff and customers rely on you to do your job. Help yourself by hiring a tax expert to take the stress out of tax season and find you monies and tax breaks.
- What institutions do I need to file my taxes with?
A: Every American is required to file taxes with their state government and the federal government. The Huffington Post points out that what many new small business owners forget (or are unaware of) is that they will also need to file taxes with other jurisdictions, including their county and district. Another reason to hire a tax expert: they won’t overlook these areas!
- Does having insurance get me a tax break?
A: Health insurance will likely get you a tax break, especially if you run your company independently and pay for the healthcare of your staff. To help you and your business year-round, make sure to get a healthcare and general liability insurance plan. Though liability insurance won’t get you a tax cut, it will protect your business’ financial interests if a customer or employee tries to take you to court for some superfluous reason during the rest of the year. In essence, a general liability insurance plan makes sure that you’re able to pay your taxes should something unpredictable happen.
- What are your deductible expenses?
A: Ah, now we’ve come to the important stuff! Business-related expenses are usually tax-exempt. Deductible expenses include: office supplies, office equipment, cost of travel, employee training costs, office equipment repairs, health insurance, utilities and a host of extras. To take advantage of deductible expenses, keep a detailed ledger (and all of your receipts) noting the costs of each service.
- If I get a refund, how should I use it?
A: Put the refund right back into your business or in your business’ savings account. Money by your business is money for your business, spend responsibly.
With a little more understanding of how to look at and talk about taxes, you’re ready to get them filed!