Tax season can be a stressful time for many, but with a little preparation, you can simplify the process and ensure that you’re in the best position to file your taxes accurately and on time. Whether you’re a single-memeber LLC or sole proprietor, getting organized now can save you time, money, and potential headaches down the road. Here are key steps to help you get ready to file your taxes this season.
Start early. Gather important financial data/tax forms:
Your personal SSN and/or business EIN
1099 forms issued to you as well as any issued by you (to contractors, for instance)
If you use platforms like PayPal, Stripe, or HoneyBook for payments, be aware of 1099-K thresholds
Profit & Loss Report from your accounting software or detailed income and expenses record (this may include a spreadsheet or any other type of written record)
Check out this list of 25+ Tax Deductions & Credits for Small Business Owners to make sure you’re maximizing your tax savings
Receipts for proof of expenses reported
Home office expenses
Proof of quarterly estimated tax payments filed during the year
Check out this article to learn more about why estimated payments may be crucial to reducing your tax liability
Documentation needed for any personal deductions or credits, such as:
Personal 1099 forms issued to you by banks or other institution
Personal 1098 forms issued to you
Personal 1095 forms issued to you
Documents needed to claim education credits or child tax credits, if applicable
📚 Tip
If your finances were mixed this year, set up a business bank account to keep business and personal separate next year. You may be eligible for HoneyBook Balance, check it out here.
Preparing for tax season doesn’t have to be overwhelming. By starting early, gathering your documents, and reviewing available deductions and credits, you can ensure a smooth tax season. Planning ahead allows you to file your taxes accurately, avoid last-minute stress, and possibly even save money in the process. Start early, stay organized, and don’t hesitate to seek professional help if needed. With these three steps, you'll be on your way to a successful tax season.
HoneyBook Tax Hub is designed to provide information relevant for tax preparation but does not provide tax, financial, or legal advice. It is not a substitute for a licensed professional. Users are solely responsible for the accuracy and compliance of their filings. We recommend confirming any information given here by seeking the assistance of a licensed professional in your area. We do not guarantee completeness, real-time updates, or assume liability for errors, omissions, or penalties.