Entrepreneurs Expected To File 23 Million Returns For 2009
Washington, D.C., March 31, 2010 – Tax Day is just a few weeks away, but is filing your return still on the ‘To Do’ list? It’s okay if you have not filed yet because the National Association for the Self-Employed (NASE) is offering some last minute tax tips to make the process go smoothly.
“From time to time, we have all gotten a later start on our taxes than we would like,” said Keith Hall, NASE’s National Tax Advisor. “If you file your business return with your personal return, you may be able to get an automatic 6-month extension by completing Form 4868 by April 15. But remember, an extension of time to file is not an extension to pay. If you do not send the IRS what you think you owe, you'll be stuck with late fees and interest.”
Hall offers these additional tips for tax procrastinators:
- Check for hidden deductions: There are a number of deductions that small-business owners and the self-employed forget when filing taxes. If you work out of your home, your office may qualify for a deduction. Do you drive to the post office or a client site? Those miles may add up to a sizable deduction too.
- Retirement savings: Retirement savings, such as SEP contributions and IRA deposits, are deductible for last year’s tax return up until April 15, 2010. That means you can count money deposited into these accounts, up until the day you file your 2009 tax return. In the case of SEP contributions, those can even be made up until an extended due date, as late as October 15th.
- Proofread the form: Most of the mistakes on tax returns are simple addition and subtraction errors. Check your math. Then, check your math again.
- Start thinking about next year: While micro-business owners may be tempted to finish their return and not think about taxes again until next year, now is a great time to reflect on how to reduce your 2010 tax liability. Consider deductions for a home office or employing your children; create a health reimbursement arrangement, which would enable the business to reimburse bona fide employees for all out of pocket medical expenses; reconsider the tax implications of incorporating your business; and research retirement plans designed specifically for the self-employed, including an IRA, SIMPLE, SEP, Single 401(k), and Keogh plan.
- Look for help: Sole proprietors doing their own taxes can find help from a number of sources, including the NASE’s Tax Resource Center, where you can ask the NASE’s expert CPAs a question and hear back within a few business days. The IRS also offers a Web site (http://www.irs.gov/) and toll-free help line, 1-800-829-1040, for your tax questions.
About the NASE
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 Web site at www.NASE.org.
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