Get Ahead of the Game

Wednesday November 1, 2017 comments

The opportunity is NOW! Knowing where you stand in your business leads to better expense tracking and budgeting, which leads to quality decision making to GROW YOUR BUSINESS, not the IRS's bank account. This also applies to individual taxpayers. Reviewing itemized deductions, wages, tax credits, and deductions will help you determine what necessary changes need to be made at the beginning of the year.

Year-End Tax Planning

  1. Complete YTD Bookkeeping, to know where you stand
  2. Comprehensive analysis of year-to-date personal, business, and investment information to determine action steps before 12-31-17 to save taxes on this year’s income
  3. December 31st is generally the cut-off date to determine tax liability and accordingly, the last date for implementation of certain tax saving strategies

IRS Deadlines. New deadlines can create big headaches and bills for taxpayers and business owners. Save money, save time, and file before the deadline. Don't pay the IRS and State more than you have to. 

Documentation is important. By collecting documentation all year long, you take the pressure off yourself come tax time. Here are the various documents you need to support your tax forms:

  • Revenue receipts
  • Business Meals and Entertainment 
  • Business expense receipts (including receipts for any home office expenses or travel mileage you plan to claim)
  • Receipts for money paid to contractors
  • Your tax register
  • Your bank statements
  • Copies of Estimated tax payments made to IRS and State

Charitable Contributions. Charitable Contributions not only help those charities in need, but can also reduce your taxable income. There's still time to donate! You can donate by cash, check, or with like-kind items. Like-kind items are deducted at fair market value. Keep your receipts for both cash and like-kind donations! 

Please Note: The Internal Revenue Service issued a warning about possible fake charity scams emerging due to Hurricane Harvey and encouraged taxpayers to seek out recognized charitable groups for their donations.

6) Year-End IRA Reminders. To make sure you are taking full advantage of the opportunity to save for your retirement, be sure to review the 2017 IRA deduction and contribution limits. You can make 2017 IRA contributions until April 16, 2018.

Open Enrollment can mean opportunities to save money. During the month of October into early November, most health insurance companies have open enrollment. Be sure to review your options carefully. There are great money saving options to help decrease your tax bill for TY2018. Health Saving Accounts (HSA) are a great way to decrease your taxable income. Money that is put into an HSA is tax-free and can be used to pay for qualified medical expenses. The money that you put into an HSA is completely yours, not your employer's. With deductibles starting over at the beginning of each year, your HSA can be used to help cover those high costs. 

Fraud and Scams. Each year thousands of taxpayers receive calls from impersonators claiming to be the IRS or State representatives. The calls usually demand money and information, include threats, and can be very intimidating and scary. Some of the most vulnerable victims are elderly and disabled individuals. Con artists have begun to use Video Relay Services to scam hearing impaired  taxpayers. Remember, the IRS will never initiate contact with taxpayers by phone, email, social media, or text messages. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. If an IRS representative visits you, he or she will always provide two forms of official credentials called a pocket commission and a HSPD-12 card. HSPD-12 is a government-wide standard for secure and reliable forms of identification for federal employees and contractors. You have the right to see these credentials. When in doubt, call me. 970.292.6752

Schedule your appointment Today! Tax season is an extremely busy time so why wait? Now is the perfect time to come in, review your financial, discuss questions, and go over your individual tax and business related matters. Be prepared! By completing your Pre-Tax season planning now, you will be ahead of the game! 

 



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