Best Way to File Your Taxes

Best Way to File Your Taxes

Best Way to File Your Taxes if You Are Self-Employed

If you’ve just started a new business, or are planning to open one, you will need to know the best way to file your taxes. The steps that you need to take are not complicated, but some of the detail might be. Whatever you do, don’t put off filing, or for that matter paying quarterly estimates, if required.

 The last thing you want, is to end the year with a nice profit, and have a big tax bill for income taxes and self-employment taxes. Like most new business owners, you’ve plowed all that extra cash back in the business, and have none left to pay your taxes.

This is a bad way to start, and you need to decide early on who will be preparing your taxes, and preparing estimates to cover self-employment taxes. If your business is rather simple, and by that we mean, no employees, and operating as a sole proprietorship, you should be able to show your income and expenses on a Schedule C.

To begin with, decide if you will be able to do the following. If not, it might be best, at least for the short term, to hire the services of a competent tax professional.

  • Decide who will prepare the annual tax return and e-file it with the IRS and state agency
  • Prepare an interim quarterly income statement to see if you have a profit
  • Annualize the profit amount & prepare an internal estimated tax return to see if you will have taxes due. If so, & they are over $1,000 for the IRS, you should send in ¼ th of that amount as your quarterly estimate. Pay the state also if there will be taxes due over the amount the state requires.

It really isn’t as hard as it may appear. If you have access to a simple software program, you can make the changes each quarter to make the calculations. If this isn’t something you feel you can do, then by all means, the best way to file your taxes might be contacting a tax professional.

For most individuals though, you should be able to make these calculations fairly easy. You’ll be on the right track, too, when after the end of the year you have your taxes done, you have no additional taxes due.

In general, if your new business is your only source of income, and you are operating as a sole proprietor, you won’t get a W-2 showing income and taxes paid in. That’s the purpose of paying the quarterly estimates, it covers federal income tax and Social Security and Medicare taxes all at once.

Who will prepare your annual tax return?

If you’ve been doing your own taxes, and have some basic knowledge as to how they work, you will probably decide the best way to file your taxes is online at one of the best sites for this. (LINK) When you are operating your own business, there will be deductions you can use to lower your profit.

Our online tax filing program will help you find these expense deductions that you can take during the interview session. If you hire a tax professional to prepare your annual tax return, because of the Schedule C, a self-employed business, the total fee would be $450 and up.

Gather all of your records

Before you even begin to prepare your tax return, you should gather all of the tax forms that you got in the mail. They would include W-2, 1099’s for interest and dividends, 1099’s for your business schedule 1098 for home mortgage and real estate taxes, and any other form that may pertain to your tax return.

Keep in mind, too, if you got any income from someone who didn’t send you a 1099 form, you are still required to report that income too. If you used your personal auto for your business, you need to maintain an automobile record book that shows the date, where & purpose of visit, beginning and ending mileage.

If you have a lot of use for your personal auto, there are software programs available that can be a big help in this area.

There are limits to certain expenses that you may be able to deduct, but our online filing program can help you with that. Keep in mind too, if you use the actual miles used method for your auto, you can’t deduct separate expenses like depreciation, gas, insurance, etc. You can use tolls though.

If you decide to do your own taxes, make sure you allow enough time to get it done. You don’t want to have to rush, because that’s where most errors are made. If you’re getting close to the filing date, and need more time, file for an automatic 6-month extension.

Just bear in mind, that the extension is only for additional time to finish your return, it’s not an extension of time to pay any taxes that are due. You need to have those paid by the original due date of the return.

Make plans now for next year’s taxes

All through this article, we’ve been saying to prepare for taxes due the next filing year, now. If your net income from the business is high enough. It’s better to pay all of the taxes that will be due by estimated tax payments. Federal and also your home state.

If estimated taxes should have been paid, the IRS and your state will assess penalties for not paying them. The estimated payment dates are April 15, June 15, September 15, and the last one on January 15 of the following year.

Plus, having a large tax balance due when you file your return is not the best way to file your taxes.

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Best Online Tax Filing – $25 Flat Rate Fee

Best Online Tax Filing – $25 Flat Rate Fee

Looking for the Best Online Tax Filing? We Have It

Have you tried to prepare your tax returns yourself and struggled with all the paperwork? Or perhaps you went to your local CPA or one of the tax franchise operators? Has the sticker shock worn off yet or did their very high fees leave you confused? Not the best online tax filing by any means.

Why spend your hard earned money on an expensive tax preparer? Or become frustrated trying to understand a convoluted tax code that even confuses some accountants? We have a simple and low cost solution. A flat rate of $25.00 and that includes a state return too. Plus View full post…

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Speedy Online Tax Services

Speedy Online Tax Services

Online Tax Services Help to Avoid These 7 Tax Return Blunders

If there’s one thing that we can count on, it’s that tax laws are constantly changing. To help us to cope, the better online tax services, such as ours at HBS Financial Group, Ltd., offer assistance to avoid the seven most common tax blunders.

These mistakes are not only made by first time tax filers with a very simple return, but also by those who file more complex tax returns. It is our hope that listing these seven types of errors will help you to avoid them.

Failure to report all taxable income

This is probably the area that so many taxpayers fail View full post…

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Filing My Tax Return Online

Filing My Tax Return Online

Filing My Tax Return Online or Use a Tax Preparation Service?

I’ve asked this question a few times, and depending on the individual, I’ve received a different answer. Those who knew more about taxes said filing my tax return online is the way to go. A few others who may not have known much about taxes, but were turned off by high tax preparer fees, agreed with them.

Others who doubted their ability to file taxes online said they would use a professional tax preparer. Some others said that a family member would prepare their taxes for them. They didn’t want the hassle and possible liability of an incorrect return.

Most all agreed and said that filing my tax return online made more sense. This method of filing your taxes has become View full post…

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Online Tax Preparation Made Easy

Online Tax Preparation Made Easy

Finally a Solution to Online Tax Preparation That Makes Sense

Now that you’ve decided to take advantage of the online tax preparation method of filing your income tax return, you need to select one of the tax vendors from the many listed in the search results.

You really need to select the one that will best supply your needs, and this will involve some research on your part. This guide may be of help to you as well. We’re assuming that you haven’t filed a tax return online before, so you may not be 100% certain on the services that you may need.

There are various factors to consider, as well as tax documents you need to have in hand before you start to look for an online tax filing service. Get all of your tax documents together such as W-2’s, 1099’s, and any other information that was sent to you.

If you’re not buying a home and don’t View full post…

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5 Free Tax Return Filing Tips

5 Free Tax Return Filing Tips

5 Free Tax Return Filing Tips to Simplify Filing Your Taxes

It’s a known and unfortunate fact that most individuals aren’t too efficient when it relates to tax return filing. We offer these free online tax preparation tips to help those who are disorganized and/or unprepared. Many are stressed out because they are not organized and it doesn’t have to be that way.

  • A checklist can be a big help in getting organized.

Making use of a good checklist will guide you in organizing all of the correct documents that you need. This one free tax return filing tip alone can make sure that you don’t miss any required details. Did we mention less stress? Getting your required documentation organized will allow you to View full post…

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How to File Your Taxes Online

How to File Your Taxes Online

How to File Your Taxes Online Faster with These Tips

There are many reasons to look for tax filing help, especially if you’re not sure how to file your taxes online. Many individuals feel that the tax laws are very complicated, and they’re simply not comfortable in filing their own tax returns.

For these individuals, tax filing help can come from a couple of sources. One option is going to a tax preparer and having him/her prepare your tax return. This may appear to be the easiest way out of your dilemma; however, the taxpayer is ultimately responsible for the return. Plus, the high fees can be a turn-off.

If the tax preparer isn’t competent, or makes an error or View full post…

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Do Your Taxes Online Fast & Accurately

Do Your Taxes Online Fast & Accurately

How To Do Your Taxes Online In Minutes

Quite often it doesn’t make much sense to have a professional handle your taxes. There are many reasons why it makes more sense to do your taxes online yourself.

It all boils down to cost. When you consider the fees charged by professionals versus the small fees to file your taxes online, its a no-brainer. During the 2018 tax season, the average fee by a pro for a federal and state return using the standard deduction was $175.00.

Filing the same return using itemized deductions, the total fee was $275.00. Say you had a side gig and had to file a Schedule C, the total fees would be in the area of $450.00 and up. In some areas of the country where the cost of living may be higher, your total fees went well View full post…

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The New Tax Law

The New Tax Law

The new tax law: What you need to know now

(BPT) – With the Tax Cuts and Jobs Act of 2017 having been signed into law, here are some of the things you should be thinking about as tax season approaches, according to Robert Fishbein, vice president, and corporate counsel, Prudential Financial Inc.

2017 tax returns

The new tax law is generally effective starting in 2018, which means that your 2017 income tax return is largely unaffected. However, there may be actions you can take now to benefit from the change. For example, assuming you are eligible, you could fund a traditional IRA before the due date of your tax return; the income exclusion may be more valuable under higher 2017 tax rates.

Lower tax rates and new withholding

The hallmark of the new tax law is lower marginal View full post…

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A Solution to Replace the Unfair US Tax Code

A Solution to Replace the Unfair US Tax Code

Finally A Solution to the Current, Highly Complex, & Unfair US Tax Code

If I were to ask this question to a group of American taxpayers, ” Are you happy with our current tax system” what do you think their response would be? I would imagine some would want to see the entire unfair US tax code burned and its authors tarred and feathered.

I think most of us would have to agree the current and extremely complex tax code is far from perfect. So imperfect in fact, that two groups have formulated plans to replace the present tax code. Our goal in this article is to compare the two plans for you to decide if either one has merit. One plan is the Flat Tax and the other is the Fair Tax.

Proponents of the Fair Tax and Flat Tax alternatives both agree that when comparing our tax system with other countries, it shows that the USA lags far behind their more effective method of raising taxes. Each says the best way to correct our ineffective system is to use their particular method of taxation.

Way back in the 2000 presidential election, these View full post…

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