Hardwood Floors February/March 2017

separate any register receipts that were paid in cash and tell your tax preparer to include those as well. As you go through your bank and credit card statements, make a list of any payments you received that might result in you receiving a 1099 or W-2. If you do work for a company and earn more than $600, you should receive a 1099 and must include that income on your tax return. If you make that checklist early, you can start marking them off as you receive them in the mail. That way you know which ones are missing and can start asking for them in early February. Companies have a deadline of Jan. 31 to postmark your 1099s and W-2s. Keep in mind that your federal return is not the only form due soon. Of course you have the state you live in (unless your state has no income tax), but you also may owe taxes to your municipality. There also will be sales and payroll forms due if applicable to your business. If you haven’t been using accounting software or still feel overwhelmed about your taxes, it might be helpful to contact a trusted accountant as soon as possible. Call them and ask if they have a tax checklist that will help you get organized and think of any deductions you might not know about. They will likely give this to you for free which gives you the opportunity to get a feel for them to see if you want to hire them to file your tax return. Another option is downloading one from the internet. Simply search for “2016 tax return checklist” or look on irs.gov. The IRS website is surprisingly easy to use.

software, then now is a great time to get started. Plus, getting started with 2017 can help you think of things you might have forgotten that apply to your 2016 tax return. QuickBooks gives you the ability to assign a tax line to each item. Over time, you could get dangerously close to being able to complete your tax return. As you get better at analyzing your financial results, you can do more tax planning that could save you big over the years. This could include estimating your tax payments and avoiding giving the government an interest-free loan by receiving a large tax refund each year. This will also help you with tax saving strategies like timing when to purchase new business equipment. • www.irs.gov – contains a wealth of information. The site has a section for all types of businesses, small and large. • Remember that extending your tax return doesn’t extend the time you have to pay. If you don’t pay taxes owed, you will pay a penalty. This doesn’t apply if you are due a refund. • The IRS will never call or email you asking for personal information. When in doubt, hang up and contact them via their contact information on www.irs.gov. Here are some final thoughts to help guide you:

Best wishes for a great 2017!

FINAL THOUGHTS

Bree Urech-Boyle is Chief Financial Officer at the National Wood Flooring Association in St. Louis. She can be reached at bree.urech-boyle@nwfa.org.

Remember that now is a great time to be thinking of your tax situation for 2017. If you aren’t currently using accounting

the magazine of the nat ional wood f loor ing associat ion

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