It’s that time of the year again – tax time!
Millions of small businesses, including your home business, will file their 2018 returns in a little under 2 months. Many will enlist the help of their accountant, while many self-employed, home-based small businesses, will have to complete returns themselves. But there are important reminders that everyone should be aware of as they complete their returns this year.
Last week, the IRS officially started receiving 2018 tax returns. But due to the unfortunate government shutdown that created unnecessary uncertainty in the small business community, long lines await, responses to critical questions may be behind, and refunds could be delayed. We are encouraging everyone to start getting prepared now: start gathering documents, educating yourself about the tax code, and reviewing any tax obligations and policies that are relevant to your small business. With the threat of another government shutdown next week, it is important to start getting ahead of the curve now.
This year is also the first filing season where the new tax law – created by the passage of the Tax Cuts and Jobs Act – goes into effect. There are key tax policy changes that you should remember that may be beneficial to your business.
Some of these changes include:
- A lower individual rate, which is where most self-employed small businesses file
- A doubling of the standard deduction, which is $12,000 for single filers and $24,000 for married couples
- Elimination or reduction of specific deductions such as for moving expenses or the unlimited state and local tax deductions known as SALT deductions, which are now capped at $10,000
These improvements to the tax code will help simplify the tax return filing process for your small business and millions of others across the country. It will help save time and money, which can be reinvested directly into day-to-day business operations through investment in new equipment and additional employees. Use these changes to the tax code to benefit your business operations – and don’t overlook deductions that can be helpful and don’t leave anything on the table.
And, remember: you are not alone. If you need help, there are resources available to help you at NASE.org, IRS.gov, and SBA.gov.
Tax Day is Monday, April 15th.
