Tax Tips
Stay Organized
- Keep thorough records of income, expenses, and deductions.
- Separate business and personal finances by using dedicated bank accounts and credit cards for business-related expenses.
Tips for the Self-Employed
- Pay quarterly taxes to avoid penalties.
- Track deductible mileage for business-related travel.
- Deduct health insurance premiums for yourself and your family.
- Use tax-free accounts, such as Health Savings Accounts (HSAs), where contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
File Early and Accurately
- Avoid delays and reduce the risk of identity theft by filing early.
- Ensure accuracy to secure a faster refund
Plan for Capital Gains
- Assets held for over a year are taxed at lower capital gains rates.
- Offset gains with capital losses to reduce overall taxable income.
Explore Tax Credits
- Take advantage of valuable credits, including:
- Earned Income Tax Credit (EITC)
- Child Tax Credit
- Energy-efficient home improvement credits
Maximize Deductions
- Claim all eligible deductions, such as:
- Student loan interest
- Medical expenses
- Home office expenses
- Charitable donations
- Use depreciation on assets and equipment to reduce taxable income over time.