It is tax filing season again. This year the deadline for individuals to file their federal income tax returns for 2017 is April 17, 2018. The two extra days are given because the normal due date of April 15 falls on a Sunday. This means that the normal due date would be moved back to Monday, April 16. This year, however, Washington, D. C. celebrates Emancipation Day on April 16 and so the IRS is giving the country an additional day to April 17, 2018. Even though there are two additional days to file it is not too early to early to begin gathering the information needed to prepare your return.
If you are expecting to receive W-2s, 1099s, or 1098s, you should have a safe place to keep them until you have your taxes prepared. Make sure that you keep all of these forms. If you fail to report all of your income or expenses, you might receive a notice from the IRS or pay the wrong amount of tax.
If you operate a business as a sole proprietor you should begin compiling your books and records of income and expenses so that these can be accurately reported. Be sure to report all income whether paid to you in cash, check, Paypal, etc., and whether or not you received a 1099-MISC from the payer. You should compile all of your expenses incurred in your business so that these can be deducted from your income. Keep detailed records of your business travel mileage. This is a deductable expense. Records of mileage can be kept of your mobile device. There are many apps that will enable you to track your mileage.
In my next post I will address other personal deductions can result in tax savings.