5 Last-Minute Tax Tips for the End of 2021
Tax day might be several months away, but the end of the tax year is nigh. And that’s why even though we’re in the back half of the holiday season, small businesses owners can check off a few last-minute tax tips well ahead of the upcoming tax season.
Listen. We know you’re busy. It’s not just that the holidays are a critical time of year for many small businesses. The holidays also are one of the busiest parts of the calendar for many Americans.
That means precious little time for anything other than critical business functions. But small business owners that can find those few minutes can still do their companies a world of good.
Read on as we run down a few last-minute tax tips for the end of 2021:
2021 Last-Minute Tax Tips
Estimate Your Taxes
Your small business taxes might not be due for another three-plus months, but that doesn’t mean you have to stick your head in the sand that whole time. A good idea for the next couple of weeks: Do an estimate of what your small business’s taxes might look like for 2021. Quick-work tax calculators such as TaxFyle and Before Tax can give you a quick-and-dirty idea of what you’ll owe in 2022. (Just remember: It’s an early estimate. Come tax time, you’ll want the help of real tax professionals.)
Get Organized
Don’t wait to get your paperwork together. If you don’t already organize your receipts, mileage and other vital business documentation, start doing so. Digitizing these items is one of the easiest ways to stay organized, but even if you’re just dealing with paper, having these in one place now will save you (or your tax preparer) a headache in a few months.
Know Your Deadlines
Of course, your tax deadline might not be April 15 — it might be earlier. It depends on what kind of business you operate. If your company is a sole proprietorship, single-member LLC, multi-member LLC taxed as a corporation, or a corporation that ends its year on Dec. 31, then it will indeed need to pay taxes by April 15. But if you own a partnership, multi-member LLC or an S Corp, you’ll actually need to file a month earlier, on March 15.
Make Sure Your Payroll Numbers Are Up to Snuff
Screwing up your payroll figures will quickly get the attention of the IRS. Specifically, if you provide a number on a 940 or 941, and that doesn’t end up being reflected in a W-2, you could be on your way to an audit. It’s a pain to submit an adjusted 940/941, but it’s not nearly as unpleasant as dealing with the IRS.
Check Out Last-Minute Tax Breaks
Even up to the very last day of 2021, there are a few things you can do to lower your tax burden in 2022. Whether it’s tossing some money into your retirement account or buying office equipment, every little bit helps — in more ways than one.
One Last Tip for the New Year
The theme across many of these last-minute tax tips is, ironically enough, not to wait until the last second. And that’s exactly our thoughts on this final tax to-do:
Don’t wait to talk to a professional tax adviser.
If you wait until the last minute to look for skilled and experienced help, you might end up disappointed come March or April. If you call now, however, it’s much likelier you’ll find a tax pro with room enough to take on an additional client.
If you’re a small or midsize business, get in touch with McManamon & Co. at 440.892.8900 or contact us online.
Tags: McManamon, McManamon & Co., small business, small business taxes, taxes | Posted in accounting, McManamon & Co., small business, Small business finances, small business taxes, taxes