Tax Time Tips

At time tax, many of us think of the statement that taxes and death are certain. Few people can quote the original source. Benjamin Franklin stated in the 1700s: “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes”. Franklin was a man of many works and talents, I am sure with his many sources of income that his tax preparation was interesting and multilayered. And he understood that while taxes are certain, the things that surround tax time are not, laws change…income rates change…family structure can change.

Whether you view tax time as simple or complex, these are some tax time tips we all can benefit from:

  • Before or on February 1, 2019 checking to see if you have received all tax related statements

o   Wage and Income Statements:

  • W2 forms and 1099 forms

o   Health Insurance Information Statements:

  •  Form 1095-A, Health Insurance Marketplace Statement
  •  Form 1095-B, Health Coverage
  •  Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

o   Other Statements:

  • 1098 Mortgage Interest Statement
  • 1098-T for Tuition Expenses
  • 1099-SA: Distributions from an HSA
  • Pay any taxes due by April 15, 2020 or set up an installment agreement 
  • Estimate the current year’s tax obligation and submit quarterly estimated payment
  • Maintaining separate bank / credit accounts for personal versus business expenses
  • Maximize the use of any tax refunds received

Tax time is usually more complicated for a business owner who is running their business up to code as compared to individual wage earners due to multiple factors such as being the receiver and giver of tax statement forms, having a lower income threshold that mandates filing a tax return and statistically having a higher audit rate. Even for those who feel comfortable preparing their own tax returns, it is strategic to speak with a financial professional periodically to ensure you not missing any key steps in tax planning and wealth building such as legitimate ways to reduce your taxes and build assets for retirement as an individual and small business owner.

Tammy Parks, PMP, CRNP, MSN-RN

Co-founder, Tax Wealth Doctors



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