Prepping taxes for a small business can be overwhelming. Among all the other chores of a small business owner, this one is vital and has significant repercussions if not done correctly and on time.
Opting for professional tax services in Playa del Rey can be the solution that saves time and money in the long run. To ensure the process goes smoothly, you need all the required documents on hand for your tax preparer. Here, you will learn a bit about the documents and info necessary to file small business taxes.
Basic Tax Information
- Previous Year’s Return
Have you started working with a new tax preparer? If so, you must present a copy of the previous year’s tax return to help the accountant gather information and calculate tax deductions and credits.
- Social Security Number
Provide full names of yourself, your spouse, and dependents (if applicable) exactly as they appear on Social Security cards and Social Security Numbers.
- Addresses
To file small business taxes, the IRS needs you to provide a street address on your tax return.
- Planning for Future Taxes
Inform your tax preparer if you expect to have any significant changes in the coming year.
- Employer Identification Number
The tax preparer will need your business’s Employer Identification Number if you have it.
Income Records
- W-2s & 1099s
These two forms contain information on wages, independent contractor payments, dividends, interest, capital gains, retirement plan distributions, and more.
- Business Financial Statements
Tax preparers offering tax services in Playa del Rey need a copy of the balance sheet, income statement, and general ledger to do the work.
- Cryptocurrency Transactions
Did you receive, sell, buy, or exchange digital currency during the year? If you did, then you must provide your tax preparer with a schedule of all cryptocurrency transactions or create printouts of transaction reports from each exchange platform you used.
Deductions & Credits
- Mileage Log
If you use your personal vehicle for business purposes, calculate the total business miles and personal miles driven for the year from your mileage log or mileage tracking app. Don’t forget to bring a copy of the vehicle registration.
- Asset Purchase Details
If you buy any long-term assets for your business, such as computers, furniture, equipment, vehicles, or real estate, the tax preparer needs a description of each item, the purchase price, and the date you started using the item.
- Payroll Records
Present copies of year-end payroll records or payroll tax returns as W-2s issued to employees and 1099-NECs issued to independent contractors.
- Home Office
If you have a home office, the tax preparer needs the square footage of the office vs. the square footage of the whole house. They also need deductible home office expenses, such as mortgage interest or rent payments, repairs, utilities, cleaning, property taxes, and homeowners’ insurance.
- Itemized Deductions
Carry a copy of the Form 1098 Mortgage Interest Statement and other supporting information for itemized deductions, such as out-of-pocket medical expenses, receipts for charitable donations, and state and local taxes.
- Self-Employed Health Insurance Premiums
Gather all premiums paid for medical, dental, and vision insurance for yourself, your spouse, and any dependents you may have.
- Dependent Care Expenses
If you pay for childcare, provide your tax preparer with the daycare provider’s name, address, EIN, and the amount you paid during the tax year.
- Retirement Plan Contributions
Bring all retirement plan contribution documents. It can be anything, including IRA, SEP-IRA, etc.
- Education Expenses
Tax preparers need copies of Form 1098-E Student Loan Interest Statement for any student loan interest you paid. Also, provide Form 1098-T Tuition Statement for college tuition and fees paid for you or any immediate family member.
Other Requirements
Apart from the documents mentioned above, a provider of tax services in Playa del Rey needs information on prior year overpayments, estimated payments, extension payments, income statements, balance sheets, cash flow statements, loan information, asset information, income & expense data, deductible information, and estimated tax records.
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