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Nailing down your tax planning strategies as soon as possible is the best way to make sure you meet all your tax obligations. Plus, you stand a greater chance of getting a better tax refund.
But as an entrepreneur, you have more tax obligations than the average employee. Here are some tax planning strategies you can implement to make sure you do everything correctly!
Entrepreneurial Tax Planning Strategies
Consult a Tax Professional
April 15th, the deadline to file your taxes if you’re a small business owner, is approaching quickly. So, you must have all the information you need to fulfill your legal requirements and reap any tax benefits.
However, tax forms seldom contain straightforward language, and you’ll likely need to complete multiple forms. If you fill these forms out incorrectly, you run the risk of owing more tax payments to the IRS. Also, you may run into legal struggles if you get audited.
So, working with a tax professional as early in the process as possible helps you know what information you need. A good tax professional also guides you through the filing process, making it more seamless for you.
Save When Working with an H&R Block Tax Pro (New Clients Only)
For new clients switching from TurboTax or another provider, H&R Block is offering $50 off in-person tax services.* TurboTax is a registered trademark of Intuit, Inc. This offer is for personal returns only and is valid for both state and federal returns. The offer is not comp eligible. Offer expires April 15th. To get this deal, use the code below.
Fortunately, H&R Block is also making it less expensive for their new customers to save on their tax prep when they work with a tax professional. At participating H&R locations in the United States, new clients will get $25 off in-person tax prep for a 2023 income tax return.* That way, you’ll have the ability to get your individual taxes done, which is a large portion of the difficulty for entrepreneurs. After all, entrepreneurs have to pay both personal and business taxes.
When you work with an H&R Block tax professional, you’ll get to sit down with a person who can prepare your return for you. They’ll take into account all your unique tax situations, including your position as an entrepreneur, and guide you through doing your taxes correctly. But appointment spaces fill up. So, to take advantage of this great opportunity to get your taxes done before the deadline, schedule your appointment as soon as possible!
H&R Block defines a new client as a person who did not file a 2022 tax return with the company. The offer is also only valid until April 15th, so click below to take advantage of it!
Use a Home Office Tax Deduction
If you run your business from home, you might be able to deduct some of your payments on your space from your taxes.
For example, entrepreneurs who have a dedicated office space in their home can calculate what percentage of their home serves as a workspace. In this situation, the space cannot have an alternative function, such as a kitchen table or bedroom.
When you work with a tax professional in person, we recommend reaching out to H&R Block as soon as possible. That way, you can ask any questions you have about a home office tax deduction. With these answers, you ensure you have everything you need for your appointment!
You also might have the ability to deduct other expenses, including portions of your electrical or internet bills.
Take a Look at Tax Credits
Making use of tax credits helps you get the greatest return possible. Multiple tax credits exist for entrepreneurs. These include but are not limited to:
- Work Opportunity Tax Credit (WOTC) – This credit applies to businesses that hire workers who experience barriers to employment. For example, businesses that hire an ex-felon within a year after their conviction or their release from prison are eligible for this tax credit.
- Energy Efficient Commercial Buildings Deduction – If you’re one of the employers who has met the business energy reduction rules, you might be eligible for this tax credit.
When you file in person with H&R Block’s tax professionals, you’ll have the chance to review the credits you’re eligible for and get your greatest possible return!
Preparing for Your Financial Future
When doing your tax planning as an entrepreneur, having an H&R Block tax professional on your side gives you a trustworthy person to rely on. That way, instead of worrying about your taxes, you get to focus on your financial future and building your business. If you get a tax return, we recommend re-investing it into your business to help it grow more in the next year.
*Valid at participating U.S. offices for an original 2023 personal income tax return for new clients only. Discount may not be combined with any other offer or promotion. Void if transferred and where prohibited. Coupon must be presented prior to completion of initial tax office interview. A new client is an individual who did not use H&R Block office services to prepare his or her 2022 tax return. No cash value. Expires 4/15/24 OBTP#13696-BR ©2024 HRB Tax Group
