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20 Days Until Tax Day – Are You Ready?
FOR IMMEDIATE RELEASE
Wednesday, March 27, 2013
CONTACT: Kristofer Eisenla, Luna Eisenla Media
kristofer@eisenlamedia.com | 202-670-5747 (mobile)
20 Days Until Tax Day – Are You Ready?
With Changes to the 2012 Tax Code, National Association for the Self –Employed Promotes Tax Tips to File Accurate Returns with Maximum Savings
WASHINGTON – As April 15th quickly approaches, The National Association for the Self-Employed (NASE), the nation’s leading resource for the self-employed and micro-businesses, today released additional tax tips for the public as part of its national public awareness initiative. In addition to ensuring the public and America’s smallest businesses file accurate and beneficial returns for 2012, the NASE is helping to make the public aware of upcoming changes to this year’s tax code while offering tax advice, assistance and resources.
“In just 20 days, millions of people, including America’s smallest businesses, will file their 2012 tax returns, and there will undoubtedly be questions and concerns about changes to the tax code and how to best comply. We want to make sure they are aware of these changes while providing tips to ensure they file accurate returns that help maximize their savings,” said Kristie Arslan, President and CEO of the NASE.
“There are simple things members of the small-businesses community can do to ensure they file accurate returns,” said Keith Hall, NASE National Tax Advisor. “Small-business owners should also remember often-overlooked deductions such as the business use of their vehicle and investing in their own future with a tax-deductible retirement plan contribution.”
CHANGES TO THE 2012 TAX CODE
- A two-percent increase in the payroll tax rate, which also impacts the self-employment tax rate, because of the expiration of a temporary reduction in Social Security payroll taxes
- The standard mileage rate for business use of an automobile has changed from 2011 rates to 55.5 cents per mile for 2012 (and 56.5 cents for 2013)
- Limits for retirement plan contributions such as IRAs and 401(k) plan have increased
- Sales tax deduction extended for 2012
- Tuition expense deduction extended for 2012
- AMT exemption amount extended for 2012 and made permanent
TAX TIPS
- Avoid Shortcuts, Tax Tip #4
Just about three weeks left until the dreaded IRS due date for individual income tax returns. The closer we get to that filing due date, the greater the temptations become to take a short cut. You may have heard yourself saying things like, “I think I had about 4,000 business miles last year, so I’ll just use that number again.” Or “I think I had about $1,100 in meals last year so let’s just use that again.” It is imperative to avoid those temptations! Now is the time to make sure your tax return is the best it can be. If the IRS does choose to ask you a question about this return, it won’t be next week or even next month, but will be over two years from now. You won’t remember why you included 4,000 business miles or $1,100 in meals and you will lose those deductions. Take some extra time now to do your return right. Avoid those tempting shortcuts. You’ll be glad you did.
- Commonly Missed Deductions, Tax Tip #3
As you probably know, most business deductions that are included on the small-business owner's tax return come right out of your business checkbook. You write a check, use your debit card, or pay an online bill, and then you just have to decide which line on your Schedule C to include the expenses. But many deductions don't show up in your business checkbook - and if you don't know how to look for them, they could be missed. The business use of your vehicle and the business use of a part of your home are both often overlooked, leaving thousands of dollars on the table. The potential tax savings benefit of a retirement contribution is also often overlooked since no one ever sends us a reminder or a bill. So before you send in that return, make sure you look for these hidden deductions, and remember to invest in your own future.
- Resources, You Are Not Alone, Tax Tip #2
Hopefully, you are well on your way to accumulating all of the paper, statements, and receipts you'll need to complete your tax return. Tackling your return can certainly be difficult with all of the detail that you are asked to remember. But, the single most important thing to remember is that you are not alone. If you have an Internet connection, you have resources to help you with your tax return. Check out NASE.org for help with any questions that you might have related to your 2012 tax return. Also bookmark the IRS website at IRS.gov in order to get the detail directly from the horse's mouth. The key point is that you have resources, and you're not alone.
- Starting Early, Tax Tip #1
It's already the first week of March, and tax day (the dreaded April 15) is closer than you think! When beginning the process of completing your tax return, it's never too early to start early. Make sure you have compiled you own personal stack of paper that you will need to fill out all of those pesky IRS forms, such as 1099s, W-2s, K-1’s, 1098s, etc. Use last year’s tax return as a guide to make sure you have all of the information that you need. If you're missing some key piece of paper, now is the time to search for it! Start early and when you wake up on April 15, you'll be glad you did.
The tax tips have been released by the NASE as part of its national public awareness initiative, which are also posted on the NASE blog, Self Made. As Tax Day approaches, the NASE has been releasing a variety of tax tips to help the public better prepare their 2012 tax return. Since March 4th, a new tax tip has been posted weekly on the NASE website. The NASE has also made their tax experts available through numerous tax webinar sessions designed to help the public. Each webinar is live with one of the NASE’s tax experts and allows participants to submit questions to be answered live on the webinar by the expert.
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The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org