It’s that time of year again when the taxman wants to know how much you have earned and how much tax you owe him. Do not forget your tax return is unique in that by April 15, the Internal Revenue Service (IRS) is back, unless you have applied and received an extension.
Business and personal guides to the current tax year a little easier on your pocket when you complete your return:
1. Travel Expenses
It is good practice to keep a mileage travel distance travel, in order to determine your exact travel deductions. If you both work, you can deduct the cost of travel from the first to the second, but if you do a simple job, you can not deduct commuting expenses as personal expenses, business expenses are considered . For business travel, such as fees for seminars and conferences are going to be 100% deductible. Deductible travel expenses, including hotel, airfare, taxis, rental cars, parking fess, taxes and tips.
2. Medical costs
Records (including invoices and statements) medical expenses not covered by your medical aid, in order to get hold of a deduction for those expenses. Given your income, medical expenses, including medical insurance and dental insurance premiums may be deductible. The fraction of the cost by more than 7.5 percent of their income is limited. Following the conversion of non-deductible personal expenses as legitimate business expenses.
3. Entertainment Expenses
Be careful of entertainment allowances. From March 1, 2002, no deduction can be claimed against the grant of fun for personal reasons. You can deduct any “food” ordinary and necessary business and entertainment expenses to 50%.
4. Tax records
Why not make your life easier and make sure you do not miss any deductions for organizing your early registration system and keep it updated. Not only having organized records make it easier and less frustrating for you to file your tax return, but it also helps to explain an item on your statement that the IRS might question, and could prevent you from having to pay taxes and additional penalties for unsubstantiated items.
Although legally only need to keep tax records for three years, you must have a copy of profits in case you need the information in these statements at some point.
5. Electronic Filing
If you want your return processed in approximately half the time of a paper return, you should consider filling out an electronic form.
6. To avoid refund anticipation loans
The downside is that these loans have an annual interest rate is very high, typically between 50% and 500%. So the cost loans, tax preparation fees and other administrative costs imposed on the loan, you end up losing a large portion of your refund.
Be aware of deadlines to avoid penalties. The tax return must be submitted before the deadline given by the IRS. If your last year’s tax affairs up to date, an extension may be requested to provide a return. However, the extension will be less, depending on your specific situation.