Enumclaw Chamber Blog


Jan
9th
Get Ready - It’s Tax Season!

Get Ready - It’s Tax Season!

By Calvin W. Goings
Regional Administrator

After settling down after the busy holiday season, another season will soon be here - tax season!
As a small business owner, it is important to understand how taxes will affect your business, how to file properly, avoid audits and claim the right tax deductions.

Here are 5 tips to ease the burden of tax preparation and help in preparation for the April 15, 2013 deadline.

1. Keep Good Records and Understand Available Deductions
Proper record-keeping year-round is the first step to ensure taxes are filed accurately. Save essential paperwork that could be needed to back-up deduction claims, should there be an audit. Keep it in mind that tax credits and deductions change each year.

2. Utilize the Small Business Jobs Act Tax Provisions
The Small Business Jobs Act of 2010, signed into law by President Obama, has over 17 tax provisions to decrease tax burdens for small businesses—several of these provisions can be taken advantage of during this year’s tax season. Utilizing these provisions could provide great savings for your business.

3. Remember the tax credits within the Affordable Care Act
These tax credits will allow small businesses to cover up to 35 percent of the health care premiums a small business pays to cover its workers. In 2014, the tax credit will increase to 50 percent.

4. Avoid Common Audit Traps
It is very important to be aware of potential red flags which could include:

• Classifying Employees as Independent Contractors – Independent contractors and employees are not the same and it is important to understand the difference. In the eyes of the IRS, misclassification can be seen as an attempt to avoid payroll taxes; non-compliance can bring penalties and back taxes.
• Home Office Deduction – This deduction is very specific and not all home-based businesses qualify. Know how to determine if you are eligible to claim this deduction and what specific expenses may be deducted.
• Large Sum Miscellaneous Deductions – If you claim a large amount of itemized deductions or miscellaneous expenses, relative to your income, the IRS could get suspicious. Be specific and label every deduction.
5. Keep Business and Personal Expenses Separate – The IRS scrutinizes personal expenses that may have been claimed as a business expense, such as the use of a business vehicle, for personal use. Maintain separate bank and credit card accounts for your business and personal use. Be diligent about keeping good records.
For additional information on these tax tips and current year tax deductions visit the SBA Small Business Tax Guide (http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/establishing-business/taxes) or contact the IRS at www.irs.gov.

Added on 01/09/2013

Filed Under

Chamber News by Enumclaw Chamber Blog


Comments (2)

Post a Comment

Meela I agree with you. This post is truly inspiring. I like your post and everything you share with us is current and very informative, I want to bookmark the page so I can return here from you that you have done a fantastic job. cyberbola.co
Dhini | Agen Indonesia | Thanks for every other informative site. Taruhan Bola Online | The place else may just I get that kind of information written in such an ideal means? I have a venture that Im just now operating on, and I have been on the look out for such information.This is my first time i visit here. I found so many entertaining stuff in your blog, especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the leisure here! Keep up the good work. I have been meaning to write something like this on my website and you have given me an idea. POKERSTAR88.COM AGEN TEXAS POKER DAN DOMINO ONLINE INDONESIA TERPERCAYA Thanks for updating us for the schedule of Zumba. It is really a fun. Your blog is keeping us update and I used to visit to keep myself updated with the chamber news and events. | Judi Bola Online Terpercaya | Thanks a lot for your assistance | Agen Judi Bola Online | This is a fantastic website and I can not recommend you guys enough. Situs Judi Bola | Full of useful resource and great layout very easy on the eyes. Please do keep up this great work. This is a fantastic website and I can not recommend you guys enough. Full of useful resource and great layout very easy on the eyes. Judi Bola | Bandar Bola Terpercaya | Great blog! I really love how it is easy on my eyes and the information are well written. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your rss feed which really should do the trick! Have a nice day! | Bandar Bola Online |

Post a comment - top

Please register to leave a comment.

Email
Password
Click to register

 
Archive
October, 2014
September, 2014
August, 2014
July, 2014
June, 2014
May, 2014
April, 2014
March, 2014
February, 2014
December, 2013

« View All
Posts by Category
Chamber Announcements
Chamber Events
Chamber News
Enumclaw Courier Herald
Enumclaw Events
Enumclaw News
Enumclaw Patch
Facebook
Fun
Member Specials
Twitter

View By Author

Enumclaw Courier Herald
Enumclaw Patch
Kelvin Schipper

JOIN THE CHAMBER

And take advantage of networking opportunities and exclusive discounts.

FIND A BUSINESS

Check out some of the unique local offerings only Enumclaw provides.

COMMUNITY NEWS

Get information on area attractions, events and government resources.