tax filing Archives - Bridge Group Tax

January 11, 2022
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Right after the holiday season, comes tax season, filing your personal or business taxes requires a good amount of attention to the details. It doesn’t matter if you hire a professional or do it yourself for the filing. It is a must to know a few things BEFORE you proceed.

Here are the five things we advise you to bear in mind before filing your taxes:

 

1. Year End Is The Most Important Time

last minute tax filing rush

December end – to be precise, 31st December, is the date on which the IRS “closes and resets.” So, try to avoid paying in excess or receiving significant transactions which may carry over in year end. Plan the big transactions for your personal/business in advance and wrap up by November end. Be proactive in filing sales and employee tax withholdings by year end. In January it would be too late. After all, you don’t like that last minute rush, do you? 


2. Make A Document Checklist

If you’re a full time employee, your employer is most likely to give you either a W2 or a 1099. You will need your ID, your SSN too, a prior-year tax return, and any applicable information on your dependents. Always remember to keep the IDs of dependents along with birth certificates and SSNs handy (whether digital copies or hard copies).  


3. Keep A Clear Track Of Income And Expenses

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As we discussed earlier, filing requires you to pay special attention to all the details. This mainly involves keeping a clear track of your income and expenses classified in applicable sections of your books. If you’re self-employed or a business owner, this becomes even more essential. You can also plan to hire a tax professional ahead of time.  

4. Personal v/s Business Tax Filing

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Have a clear understanding that personal taxes are only applicable to your income and your expenses as an individual. While your business is a totally separate entity in the eye of the IRS. Even when you’re a Sole Proprietor or owning a company individually such as a single member LLC, any expenses or income to the business should be utilized through the business bank account and documented separately to be produced as a Business Tax Filing.


5. No Question Is Silly When It Comes To Tax

Taxation rules and regulations in the USA are ever changing. At the same time, each filing is different based on individual or business type, circumstances and applicable rules to the business category (in case of business filing).

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So, it’s always a smart thing to ask your questions & share concerns with a Tax Professional. Even when you feel that it’s a silly thing not to know. Search online.

There are plenty of resources on Google and YouTube to help you with Tax Preparation readiness and Documentation preparation.

You can also Contact Us and schedule a Free Consultation for your Tax Filing and Financial Planning.
Explore Frequently Asked Questions on Tax Filing for a better understanding.