I still remember the first time I filed taxes for my business. In addition to having no idea what a write-off really was, I also didn't worry too much about guessing on the numbers. A few government audits later, I discovered what it really meant to do things the right way. Over the years, I have met lots of business owners that weren't too worried about fudging the numbers, and nearly all of them have run into problems. Proper accounting is important, which is why I created this website dedicated to business accounting. I know that if you learn the right way to do things and focus on integrity, your business can avoid a world of problems.
With tax season in full play now, many people have questions about how taxes work. Taxes can be very confusing, which is why so many people choose to hire professional services. This is a wise choice, and can help you save money and ensure that you avoid the extra headache of taxes. For those who may not understand taxes as well, here are a couple answers to commonly asked questions.
Do Taxes Have To Be Done By A Certain Date?
Many people do not realize that there is some flexibility when it comes to tax season. There is a tax day where you need to have your taxes done by. If you don't have your taxes prepared and submitted by this time you could be penalized. However, there is an exception. First, you can file for an extension. This means that you can be granted a couple extra months, or even wait a year or two before you need to file your taxes. This works well for people who know they will owe money and want to delay paying it. Or if they have very complex taxes and need more time to put things together. If you don't file for an extension you need to try and get it done by tax day.
In addition, you can amend your taxes. So let's say you made a mistake, you can go back, usually up to 2-3 years and file an amendment. This is a great way to make sure that you maximize the amount of money you get in a refund, or make sure you don't overpay.
How Do People Save Money on Their Taxes?
The best way to save money on your taxes is to utilize credits and deductions. Everyone has a certain amount that they can be taxed. This is based on many factors such as your marriage status, children that you have, disability, and income, among other things. With a deduction you will have the amount that you can be taxed lower. So if you could be taxed $10,000 then with every deduction that you take, it would lower the amount.
Second, you can get credits. Credits are just something that the government gives you, like a gift. For instance, if you bought a house, you might get a home buyer's credit. If you made your house green and put solar panels on the house, you might get a credit. There are many credits out there. The trick is knowing what you qualify for so that you don't miss out on them. This will be your best way to save money.
If you are still confused about taxes, talk to a tax professional like HBE Becker Meyer Love LLP.Share
23 March 2015