Tax time is here, and it’s time to review 2021 tax prep tips for Las Vegas small businesses. The average small business pays an effective tax rate of 19.8 percent. Make sure that you’re maximizing your tax deductions and credits, minimizing your taxable income, and utilizing tax rules and regulations to your benefit by beginning your preparations now. Here are a few 2021 tax prep tips for small businesses to follow.
Get Your Documents, Receipts and Statements Organized
One of the smartest things you can do to decrease the amount of time it takes to file your taxes and minimize your tax liability is to gather all the paperwork you need to file your taxes and get it organized. Better yet keep things reconciled and organized all year! Group your paperwork together by category. For example, information related to your income should have its own category, while documents related to tax deductions will go in a separate file. Review your paperwork to make sure you’re not missing anything. Detecting any missing documentation early ensures you have time to request and receive a copy before your taxes are due.
Know Your Deadlines
Understand your tax deadlines to make sure you get your taxes filed on time. For the 2021 tax year, Monday, April 18, 2022 is the filing deadline. If you are an S corporation or a partnership, Tuesday, March 15, 2022 is the filing deadline. However, if you’re outsourcing your tax filing, you’ll likely need to provide your tax professional with your financial information sometime before the actual filing deadline. Depending on how you file and pay your taxes, there may be other form, schedule, and estimated payment deadlines you need to be aware of.
Consult with an Experienced Tax Professional
Even if you think your tax situation is fairly straightforward, there may be valuable deductions and credits that you’re missing out on. COVID-related legislation has also changed how you can utilize certain tax programs, credits, and deductions. You may also need to provide additional documentation to prove your business was qualified to take advantage of certain tax programs and rules. Your tax pro will ensure that you have the required documentation to prove your eligibility and work to help you make smart tax moves. Need additional 2021 tax tips for Las Vegas businesses? Contact us today!
