With the massive disruption caused by the COVID-19 pandemic, it’s been a challenge for many people to properly organize their finances. Fortunately, the federal government extended tax filings from April 15th to July 15th. That said, the time is rapidly approaching to get those filings done, and you might have some questions about it.
Needless to say, the above suggestions are general, and do not replace advice from an accountant the IRS. Local and state tax considerations are also excluded. Contact a tax professional or official government tax websites for specific advice and answers.
Does Everyone Have to File Taxes?
The short answer is not everyone has to, but you likely do. If you meet certain criteria like earning below a certain amount of money then you may be able to get by without filing taxes. If you have any special circumstances like self-employed income, however, you must file. Additionally, even if you meet all the criteria, you are not entitled to a tax refund if you don’t file.
How Do You Do Taxes When Self-Employed?
When it comes to taxes while you’re self-employed there are a lot of things to keep in mind. Although you have to pay the taxes that aren’t deducted in a job you’d get a W-2 for, you have the option to make deductions that can be used to reduce the amount you owe. As great as that is, It can be daunting trying to keep everything organized.
How Do I Organize My Small Business Taxes?
You can find plenty of small business tax tips out there, and what you’ll find is that organization is key. The only way to really be organized today is by going paperless. By keeping all of your records digitally, you’ll be able to navigate through the documents you need when you need them and eliminate the risk of missing key items for your taxes.
Will I Get a Refund If I Didn’t Work?
In some situations you may qualify for a refund even if you haven’t worked during the tax period that you can currently file. As stated above however, you must file your taxes to get a refund as you won’t get one automatically even if you do quality. You also might have special tax considerations due to the COVID-19 pandemic. Talk to your accountant about new expenses related to temporary closures, switching to remote work, creating new safety procedures, etc. Keep records of all such expenses for your 2020 taxes.
Needless to say, the above suggestions are general, and do not replace advice from an accountant the IRS. Local and state tax considerations are also excluded. Contact a tax professional or official government tax websites for specific advice and answers.
Storage Quarters Can Help You Organize Today
If you’re filing taxes as a self-employed freelancer or as a small business, it’s important to keep your finances organized all year round. The information management specialists at Storage Quarters can help. We do more than physical paper and document storage. We’ll work with you on converting your documents to digital and secure shredding. It’s safe, secure, and worry-free storage. Even better, it’s good for the environment! Reach out to us today to see how we can make running your business easier.