Tax day has come and gone. Hopefully it went smoothly and there weren’t any big surprises. If that wasn’t the case, I’ve got 3 tips to make next year’s tax day go smoother.
Pay your estimated taxes
If you’re working with an accountant or calculating them yourself, pay your estimated taxes! If you end up overpaying, you’ll get every dollar that you overpaid refunded when you file your return. If you skip your payments and owe more than $1,000 to the IRS, watch out for penalties and interest.
Don’t wait until the last minute
This might sound like common sense, but seriously, don’t wait until the last minute. As soon as you’ve finished celebrating the new year, start rounding up your tax documents. Once you’ve gotten all your 1099’s, W-2’s, investment statements, expenses, etc…get comfy and just get your taxes done. If you’re going to work with an accountant, contact them early on so they aren’t rushed to finish your taxes.
Don’t wait until the end of the year to figure out your mileage. Start tracking now! The same goes for tracking your inventory. I don’t have to tell you how much of a pain it is to have to go back and calculate how much inventory you started with and which purchases were for inventory so you can then calculate your cost of goods sold.
With these three tips, you should be smooth sailing and stress free for next year’s tax return!