6 Ways You Can Save Money… AND Make Your Accountant Happy At Tax Time!

Who doesn’t love to save money?

With these 6 ways, you can help yourself and make your Accountant proud!

1. Separate Business and Personal Expenses

Keeping track of what you use for your business and what is personal is important.

How can this help? Knowing the potential tax deductions and credits, lowering your chances of being audited by the IRS and protect your personal assets.

2. Know Your Itemized Deductions

Itemized deductions are expenses you can deduct from your taxable income. If your standard deduction is higher than your itemized deductions, you won’t benefit.

How can this help? More deductions when itemizing can increase your tax refund. The amount you save depends on your tax bracket.

3. Sort out your contractors

If your business uses contractors and pays them $600.00 or more over the course of a year, you’ll need to send them each a Form 1099. You must get the contractor to sign a Form W-9 before sending a 1099.

How can this help? Having W-9s prepared in advance can save time for you and your accountant.

4. Take a closer look at medical expenses

The TCJA reduced the threshold for medical expense deductions from 10% of AGI to 7.5%.

How can this help? This could mean some taxpayers could claim their prescriptions, copays and other expenses.

5. Adjust paycheck withholdings

Adjusting withholding can help prevent penalties.

How can this help? You could break even at tax time, which means you got to keep more cash throughout the year.

6. Step Up Your 401(k) Contributions

You can save for retirement by putting money into tax-deferred accounts, such as a 401k or other workplace plan.

How can this help? You can reduce your taxable income.

If you need more tips on how to save at tax time, schedule a free consultation on our website today!