Getting Your Business Ready to File Taxes
Filing Your Business Taxes
Even though pass through entity tax returns, such as S Corporations and Partnerships, were due on March 15, there’s still time to file personal and C Corporation tax returns. The deadline to file personal and C Corp Tax Returns is April 15, 2019, also known as Tax Day.
Tax return extensions may be filed by the due date to grant a 6 month extension, however that does not relieve the taxpayer from paying any taxes due by April 15. Also note that penalties and interest will accrue even if an extension is granted.
Having your business and personal files organized will make the entire process easier and faster. Here is a list of documents you should have ready:
Business Documents and Information Needed to File Taxes:
Here is a tax preparation checklist that may help. Remember, you may need other items or information not included on this list, but here are some common ones:
- The Social Security Numbers of yourself and all dependents you will claim
- Your Bank account and routing numbers
- W-2s, 1099’s, 1098’s and related tax forms
- A list of your previously paid taxes: self employment, estimated taxes, property taxes, etc.
- Receipts for your charitable donations
- Contributions to retirement accounts (401k, IRA, self-employed retirement accounts).
- Home buyer tax credits
- Child care and education costs
- Mortgage or student loan interest payments
- Medical costs and deductible receipts
- Other related documents
No matter how you choose to file, whether through a self service platform or through a professional accountant, keeping your tax documents and important information organized will save you time as well as reduce errors when filing. Have a designated place where your documents will go, such as a file folder, large envelope or binder. If you are a business owner, you may want to keep your personal and business paperwork separate to stay more organized, even though you will combine information when it’s time to file. Consider having separate labels for Income, Expenses and Deductions. Keep all receipts for itemization in a folder.
There are also several kinds of apps and software programs available, many of them free, to help you digitally keep track of all important tax documents. You may look into Mint, Personal Capital, Quicken, and other financial advisory programs.
Keep your business organized throughout the year.
Day to day life gets in the way of running a small business. Sometimes we push things to the side, or worse just throw everything into piles. Although this saves time in the moment, we tend to pay for it in the long run.
Do you need some professional help? Reach out to our small business specialists today!