The IRS will begin accepting e-filed returns on Monday, January 29th. W-2 forms have been or will soon be received. What should taxpayers be thinking about?
The first step is to look at your last year’s return. Did you owe money, or receive a refund? Did your financial and/or life circumstances change materially in 2023? Newly married or divorced with dependents? How will this affect your potential tax refund or liability? Here are some things to think about –
- For individuals filing their small business on schedule C, are you gathering all relevant expenses incurred, i.e. – anything spent that related to your earned income? What about costs associated with a home office, auto expenses, telephone, and internet expenses?
- Married taxpayers filing joint for the first time typically see more advantageous opportunities for deductions. Divorced taxpayers may also have advantageous filing options depending upon when they were divorced or separated.
- Uber/Lyft drivers, have you received your income and expense reports from your employer yet? Are they capturing all eligible mileage? What about other deductible expenses? Below are some guidelines to review –
Tax Deductions for Rideshare (Uber and Lyft) Drivers and Food Couriers
- For “pass through” entities such as S Corporations and Partnerships, if you have not done so already you should begin discussions with your financial and tax professionals on reasonable compensation for the past year (S corps), partner earnings distributions (Partnerships), K-1 reporting requirements, etc.
At CPA Mobile Tax Services, we are here to help our clients understand their filing requirements and where to find the information they need to minimize their tax burden. We look forward to helping you to navigate the sometimes-confusing world of income tax.
