01/10/2019
Hello All,
Here’s a good article for those who want to start off their New Year in improving their financial health because it’s really all related. Much of our physical health can be traced to financial stress. The healthier you are financially, the healthier you are physically, mentally, emotionally, and spiritually.
The sections I’m particularly big on are:
Pay Estimated Taxes – I can’t emphasize it enough, if you know you’re not paying enough tax during the year, pay something in estimated taxes. This is not just for the self-employed. Many who are employees under-withhold for different reasons, mostly due to hardship, but if you come into a few extra $ and you know you’re behind in taxes, send the IRS the $. I bet they’ll accept it at any time.
Separate Business Accounts – I stress this so much with my clients. Separate personal and business funds. It’s so important on so many levels. My two best arguments is that it keeps you better organized and is an asset if trying to prove you’re operating as a valid business.
Track Miles – remember you can deduct charitable miles (when you go to donate or volunteer); unreimbursed miles you travel as an employee (does NOT include commuting); miles as a self-employed person (even runs to the post office – little things add up); and miles to medical appointments. You get different amounts based on the type of miles so track separately. There are mileage tracking apps out there.
Record Other Business Expense & Document Everything – The article lists these separately but I feel it’s one-and-the-same. If you document everything, you’ll catch other business expenses you might have overlooked. I’ve begun offering scanning and organizing all of my clients’ documents as an added service as I’ve realized it organizes them, releases that year-end stress of trying to find tax info, and reduces paper. There are apps out there but if you’re too busy, pay someone to do this, but PLEASE only deal with someone who you trust seeing all your personal/private info. It’s an investment in your financial health. It’s like paying more to eat healthy now. You’re going to pay for your health now or later and later will be more expensive because more than likely you’ll be unhealthy.
***Tutaonana***
Wondering how the new tax law impacts you in 2019? There are changes that could impact you in ways you might not expect, so it's best to be prepared. Starting the new year with these tips could mean easier tax filing, paying less to the IRS next year, and avoiding audits for individuals and small-bu...
