If you’re a small business owner or an entrepreneur, you need to make sure that your taxes are properly accounted. Incorrect filing typically means paying more taxes than necessary. Here are some of the most important things you should keep in mind when filing your 2016 taxes.
- Health Care – There are some exceptions, but not being enrolled in a qualified healthcare plan means you’re likely to be affected by penalties as per individual mandate (about 2.5% of your income).
- Home Office Deduction – If you work at home, you can save up to $1500 by selecting the standard home office deduction on your federal tax return form.
- Mileage Rate – With a reimbursement rate of 54 cents per mile, you could get significant deductions if you’re a frequent
- Retirement Contributions – Don’t forget that SEPs, IRAs and 401k plans allow you to take a tax deduction for this year’s tax return.
- Health Reimbursement Arrangements – Thanks to the 21st Century Cures Act, there are no more penalties for businesses that offer Health Reimbursement Arrangements.
- Going Digital – Filling out forms the conventional way could mean plenty of messy erasures or ineligible writing, which could lead to errors. It’s much better to file your returns online to ensure clarity and accuracy. If you need a printed copy, just save the file, and print it later.
- Deadline Extension – Filing your tax returns could take some time even if you prepare ahead, but you can always file an extension if you feel like you won’t make it before April 18th.
Filing your tax returns this year doesn’t have to be a major hassle. Hire a tax accountant or service to help you sort out your business taxes if you are having difficulties. Of course, if you are having financial strains that are hindering your business during tax time, you could always apply for working capital with us. STRADA Capital assists businesses of all types with the finances they need to succeed.