• Springfield Illinois: Tips on How to Prepare Your Taxes

    December 15, 2020
  • Small globe with colorful pencils and a blue mouse sitting on a wooden desk with a sign that says tax tips

    With the end of year approaching, tax season is right around the corner, making it the perfect time to start thinking about your state and federal tax returns. As a business owner, there are many forms and regulations to keep track of when it comes to claiming your business on your taxes, that is why the professionals at JLW Tax & Bookkeeping Services are here to help you along the way. We help business owners become familiar with any tax bills that are passed without their knowledge and prepare all their documents so that the filing process is as smooth as possible. Read below for additional tips on what you can do for tax preparation before meeting with a professional.

    Look at Your Paycheck Withholdings

    This may seem like an obvious preparation, but many business owners forget what percentage of withholdings are being taken out of their check every one or two weeks. We recommend that you review your paystubs over the past few months to see if the taxes being withheld is a significant percentage of your paycheck. If that is the case, it could mean that you will get a larger refund on your return, if not, you could be paying more than you were anticipating.

    Person sitting at a wooden desk with a laptop, computer, and graphs calculating taxes for small business ownersChoose A Reliable Tax Preparation Company

    While it may seem like all tax preparation companies are honest and care about their customers, that is not always the case. If you have a small business or recently got married or divorced, you will need expert advice from a trustworthy tax professional to ensure that your taxes are being filed correctly and with your best interest in mind. At JLW Tax & Bookkeeping Services, we have over 30 years of experience with a trustworthy and reliable reputation that aims to help you prepare your taxes correctly.

    Choose to Increase Your Contributions to Your Retirement Plan

    If you have been hesitant to add additional funds to your retirement plan over the past few years, it may be time to increase your total contributions. Not only will you be preparing for your future but placing additional funds in your 401k or 401b account will reduce the amount of income you are able to be taxed on for the year. This decreases the amount you will owe on your tax bill and will prevent those funds from being wasted on any unnecessary purchases in the future.

    White tax deduction sheet claiming gifts to charity with a yellow pencil on tax formConsider “Bunching” Your Deductions

    Bunching your deductions means that you opt in to pay two years’ worth of deductible costs before the end of the year so that you can itemize them on your following tax return. You can do this by timing you expense so that the number of itemized deductions you can receive is greater than the standard deduction that most homeowners settle for. This technique allows you to get the maximum benefit on your tax return every year as long as you take the time to plan ahead!