Your mind is probably on holidays, family, and end of year planning right now. As the year wraps up there are a lot of things both personally and professionally that need to get done.
For freelancers, contractors, and some small business owners, it’s also a good time to think about taxes. Taxes might not be as fun as mistletoe or holiday parties, but they’re important to ending 2017 on a good note. There’s one more quarterly tax deadline for 2017 in January. Companies begin sending out 1099’s and w-2’s in January as well. The end of December is the best time to prep for tax season.
Prepare for tax season now so that you can head into 2018 financially and mentally prepared.
Organize Your Financial Records
Before the end of the year, gather all your financial records for 207 into one place. This should include your profit and loss statement, your invoice history, and your previous tax paperwork.
You probably won’t get any paperwork from companies you worked for until mid-January. That’s fine, because as long as you’re organized on your end, receiving your 1099’s and W-2’s will just be the cherry on top.
Arrange Your Final Quarterly Payment
January 15th is the last payment date for 2017 quarterly taxes. Take some time now to make sure you have enough money set aside to pay your tax burden, and that you have the appropriate paperwork.
You don’t want to start the new year by missing your last tax payment or setting yourself up for a penalty from the IRS. Before you dive into the holidays full force, make sure you can afford your upcoming tax bill.
Plan Your Deductions
This may very well be the last year you can claim a lot of small business itemized deductions, thanks to the GOP tax bill. Deductions are a key part to keeping small businesses afloat. Go back through your purchasing receipts and get ready to deduct things from your expenses.
Taxes are inescapable, and the IRS does not play around. It’s the smart move to get as prepared for them now as you can. If possible, reach out to your accountant before the end of the year and make sure that you’ve got all the information they’ll need to do your 2017 taxes, and ask if you’re overlooking anything else you can be doing. You can take the mental load off and really enjoy your holiday season by ensuring you’re prepared for tax season.
