Hey pros! New month, new contest, another chance to win $100 in Thumbtack credit.
To enter, respond to this post with your answer to the following prompt:
It’s tax season! As a business owner, what is your number one tip or resource to ace tax season? What is something you wish you would’ve known about taxes before starting out as a business owner?
The contest will be live until Tuesday, March 17 at 12pm PST, and winners will be announced on Friday, March 20th.
We will be selecting 2 pros to win:
The first winner will be the pro whose post received the most kudos so if you see a post you like, give it a thumbs up! This pro will receive $100 in Thumbtack credit.
The second winner will be the post of our choosing that we feel has a particularly inspiring lesson that other pros can learn from. This pro will receive $50 in Thumbtack credit.
As a business owner, what is your number one tip or resource to ace tax season?
~This may be most helpful for those who are newbies at doing their own taxes and/or just starting to run their own business. I learned the hard way and it may be extremely obvious to some but I always thought since I first started running my own business, no matter what I made, I would be able to deduct everything and therefore it was worth hours of adding up medical bills, car expenses, donations, my business deductions (rent/utilities) etc...but all to find out at the end that the standarized deduction was MORE. And just like that an entire work day was wasted.
The standardized deduction changes *slightly* year to year and the $$ cap they say you can make in your business and still not have to turn it into taxes changes changes too (just call a CPA or accountant real quick or look online for free to find out), but if you don't make more than for me about $5,000 a year then-yes save your reciepts but do not waste anytime trying to deduct any of it. Take the standarized refund instead, this year it is higher, $12,000 so you may even be less likely to get a refund than last year unless you are really working part-full time with your business and putting a lot into it as well.
*Bottom line-Use the tax assistants that are online to help espcailly when doing your own taxes as things are always changing and check the $$ cap your business can make without having to legally input it/waste time with deductions. (You still save all your receipts and rental fees, supplies needed, mileage ect....). Also, it is worth time to double check to ensure you really didn't go over the standardized deducation by the way, if you were already along the way entering it into excel were it adds the money up as you go for you even and makes it so simple!
The major thing that we have learned and this is similar to someone else's post, the standard deduction has actually become more beneficial to use. Do the necessary homework and see which is more fitting for your own business. The next tip is make sure you are paying quarterly taxes. As a business owner you are now responsible for your own withholding. This is part of saying goodbye to an employer. It is a painstaking process but well worth it.