Tax Tips

It may seem a way off, but tax season is right around the corner. Beat the rush by preparing now. Before the tax year ends is the time to make your donations and charitable contributions, organize your paperwork and make your estimated tax payment prior to January 15, 2020. Use these tips below and take the headache out of tax season!

• Be prepared

If you expect to owe more than $1,000, you should be making quarterly estimated tax payments. Stay prepared by updating documentation on a daily or weekly basis and setting aside funds for tax payments.

• Get organized

Collect and label your expense receipts, mileage logs and income. Professionals recommend having a dedicated credit card for business expenses.

• Declare all your income

You should receive a 1099-MISC form from any agency you provided services for and earned $600 or more. However, freelancers are responsible for reporting all earned income, regardless of the amount or method of payment.

• Know your deductions

Potential qualified expense deductions include business meals, lodging, professional development, office expenses, equipment, mileage and transportation costs. Please note any deductions should be ordinary and considered necessary for your business.

• Hire a tax professional

The IRS is constantly updating tax laws. If you can’t keep up, it may be better to hire a professional to help you sort it all out.