7 End-of-Year Tax Tips You May Have Forgotten About

iStock.com/Xesai

4. Take Advantage of Your Tax Credits

There are particular tax credits that are written specifically to benefit business owners. For example, the Small Business Health Care Tax Credit lets small business owners deduct a portion of health care premiums paid if they have 25 or less full-time employees.

However, there is much uncertainty about the future of taxes and health care policy due to politics, so make sure you work with a tax expert to stay relevant and legal.

5. Startup Expenses Can Also Be Deducted

If you just started your business during this tax year, you might be able to deduct some of the startup costs on your tax return. You can make deductions of $,5000 in qualifying startup costs, and $5,000 in organizational costs. However, if you’re startup costs exceed $50,000 you might not qualify for a deduction.

6. Don’t Forget About Independent Contractors

Worked with a freelancer or independent contractor this past year? If so, any expenses you incurred are usually tax deductible as a business expense. Just make sure you’ve sent a form 1099 to the independent contractor that you worked alongside.

7. Operational Items

There is so many tax deduction that it’s easy to forget about some of them. Items that you might’ve overlooked are business insurance premiums, rent or lease payments on your office, and cleaning or other services that you pay for.

Get organized now, so you will be, not only ready but knowledgeable when filing your taxes. A little time spent on research, can save you a lot of money and stress during the tax season.