Tax Resources

To file your taxes, you’ll need several key documents depending on your situation. Common documents include:

• W-2 forms from your employer to report income.
• 1099 forms if you’re a freelancer or independent contractor.
• Form 1098 if you have paid mortgage interest.
• Receipts for deductible expenses, such as charitable donations, business expenses, or medical costs.
• Bank statements to track income, interest, or dividends earned.
• Identification (e.g., Social Security Number or Taxpayer Identification Number).

If you have other income sources, investments, or assets, additional documents may be needed. It’s a good idea to keep all tax-related documentation organized and accessible.

As a small business owner, you can reduce your tax liability by:

• Claiming business expenses: Deduct ordinary and necessary business expenses like rent, utilities, office supplies, and marketing costs.
• Taking advantage of tax credits: Explore available credits such as the Small Business Health Care Tax Credit or the Work Opportunity Tax Credit.
• Using the home office deduction: If you run your business from home, you may be eligible to deduct a portion of your rent or mortgage interest, utilities, and insurance.
• Deferring income: If you’re a cash-based business, consider delaying invoicing until after the tax year to defer taxable income.
• Maximizing retirement contributions: Contribute to a SEP IRA or Solo 401(k) to reduce your taxable income and save for retirement.

Always consult with a tax professional to ensure you’re making the most of the deductions and credits available to your business.

For individuals and businesses that are self-employed or have other forms of income that don’t involve tax withholding, the IRS requires estimated tax payments to be made quarterly. The due dates are:

1. April 15 (for income earned in January through March)
2. June 15 (for income earned in April and May)
3. September 15 (for income earned in June through August)
4. January 15 of the following year (for income earned in September through December)

These dates may vary slightly depending on weekends or holidays, so it’s always a good idea to verify each year. Missing these deadlines may result in penalties and interest.

Contributing to retirement accounts can offer significant tax benefits:

• Traditional IRA or 401(k): Contributions may be tax-deductible, reducing your taxable income in the year you contribute. Taxes on the earnings are deferred until you withdraw the money in retirement.
• Roth IRA or Roth 401(k): Contributions are made with after-tax dollars, meaning you don’t get a deduction in the current year. However, withdrawals in retirement, including earnings, are tax-free.
• Self-employed retirement accounts: If you’re self-employed, contributing to a SEP IRA, SIMPLE IRA, or Solo 401(k) can reduce your taxable income while helping you save for retirement.

These tax benefits can help lower your current tax bill while building long-term financial security.