There’s nothing more painful than making a mistake in the sphere of taxes. Yes, everyone says that mistakes are not bad: they think that you can actually learn from your mistakes, that if you learn the hard way, you are more likely to succeed, but let us tell you the truth – making mistakes related to taxes is a completely different thing!

 

We don’t say that you don’t learn from your tax-mistakes. What we say is that it’s ten times more difficult to amend the situation when you do something wrong while handling taxes! And that’s completely true! Ask a random person about taxes: they will only express their hatred and go away! So, to help you find a place far away from tax mistakes, read this article, educate yourself! 

 

Ignoring Healthcare 

 

As you already know, our life and our ehealth are not guaranteed at all! One day it’s pandemic, the other day is a car accident: you just can’t be certain that everything will be just fine! So, you need to save some money for your healthcare needs and you can do that by using health savings accounts! 

 

This is a great way to avoid medical expenses that increase every single day. Yes, you’re okay now, but what do you know about the future? 

 

More Info on Health Savings Accounts…

 

According to healthcare.gov, it is “a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs.”

 

Not Deducting Your Travel Expenses

 

You surely enjoy your business travels. But did you know that you can deduct your travel if you prove that it’s related to your business? Well, yes that’s possible! However, you should first of all review IRS’ requirements and only then apply for deductions. According to the Internal Revenue Service,  “you can’t deduct expenses that are lavish or extravagant, or that are for personal purposes.”

 

In any case, this will significantly reduce your business taxes and will help you operate your company in a more efficient manner! 

 

How do you understand that you’re on a business trip? Easy! IRS will help you with that: in the case of business travel, you’re traveling away when “your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day’s work, and you need to get sleep or rest to meet the demands of your work while away.”

 

Not Including Your Family Members In Your Business

 

Having a big family is one of the treasures you can ever find! Fortunately, families are valuable not only throughout life, but also when it comes to taxes! As strange as it sounds, your family is the key to lowering your small business taxes! What’s more, you can even recrute your children if you want to. Juust to make you know what we’re talking about, here is one of the regulations that you can find on the IRS website:

 

“Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.” 

 

See? If you don’t want to see how your tax bills increase, you can always ask for help from your family. In fact, it is not said in vain that family is not an important thing. It’s everything!

 

Don’t worry if you are filing small business taxes for the first time, everything has its time! Just make sure you do everything right before the actual process. Yes, taxes are complicated, yes, it’s hard to understand what the IRS wants from you, and yes, without basic knowledge taxes will give you a hard time. But don’t worry. Everything is possible when you have a special key, and in this case, you can take it from us at Prestige Auditors! 

For more information on our prestige tax services contact us!

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