Tax day is almost one month away! Keep reading for some last-minute tax tips for last-minute filers.
When is the last day to file taxes?
First, know when to file your taxes to avoid any late fees or penalties. For your 2020 taxes, the last day to file is Thursday, April 15, 2021. If you need more time, you can try to file for a tax extension. This gives you until October 15th to file your tax return.
What tax bracket am I in?
Know which tax bracket you are in when assessing your financial decisions. This is especially beneficial to next year’s tax return, but it still gives you an idea of how much you will need to pay in taxes this year. If you are unsure of which tax bracket you are in, this tax bracket calculator may help you.
Credits and Deductions
Business tax credits are subtracted directly from your taxes, while deductions reduce your taxable income. File for all the deductions and credits possible. Do your research to ensure which ones apply to your business, and have proof of why.
Common deductions for small business owners:
- Home office deduction
- Advertising and promotion
- Business meals
- Business insurance
Common business tax credits:
- General Business Credit (Form 3800)
- Investment Credit (Form 3468)
- New Markets Credit (Form 8874)
- Alternative Motor Vehicle Credit (Form 8910)
- Credit for Small Employer Health Insurance Premiums (Form 8941)
- Credit for Employer Differential Wage Payments (Form 8932)
If you haven’t been collecting your physical and digital receipts from purchases all year, now is the time to get those together. Your receipts are proof of purchases made throughout the year concerning your business. You may write off some of these amounts as deductions, saving you money.
Have a plan of saving receipts for 2021 so that you aren’t in the same situation next year. This keeps you organized, saves you less time gathering items, and reduces your taxable income.
Hire a Tax Accountant
If you are struggling to complete your taxes, or just simply don’t want to, PL Consulting is here to help you. Hire our professional tax accounting team to help you file your 2020 taxes. Though this will be a financial investment, it will save you money. We will manage your business taxes this year and plan for upcoming years.
Our professionals at PL Consulting and Bookkeeping Plus will assist you in saving as much money as possible. We are qualified to assist you with any issues relating to the IRS, relocation, or out-of-state taxes.
We are your go-to resource for bookkeeping and accounting services. Our team serves the Baltimore, Maryland area and beyond. We customize our services to each client and help you maintain good records and financial statements.