Common Mistakes by Small Business Owners When Filling Their Tax Returns

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Common mistakes:

  • One of the most common mistakes made by small business owners does not understand what they can and cannot claim as a deduction on their tax returns. It is important to be aware of all the deductions you are eligible for in order to get the most back from your taxes. Some other common mistakes include not keeping good records, overestimating income, and underestimating expenses.
  • According to AronGovil if you are self-employed, it is important to keep track of all your business-related expenses throughout the year. This includes things like mileage, office supplies, advertising, and meals out with clients. All of these expenses can be claimed as a deduction on your tax return. However, it is important to have documentation to support these claims.
  • Another common mistake is overestimating the amount of income you will bring in this year. This is especially true if you are getting paid under the table for another job or selling illegal substances, both of which are very illegal. If your expected income is higher than what you end up making, then some of your deductions might not be able to be claimed on your tax return because they would exceed the standard deduction. Many small business owners also underestimate their expenses because they simply do not know all the potential deductions available to them.
  • If you are self-employed and have filed a Schedule C with your tax returns, make sure one or more of these common mistakes are not part of your current filings! Our professionals at Golding & Golding are happy to provide free consultations to help business owners understand their deductions and get the most back from their taxes.
  • Small business owners can make a lot of mistakes when filling out their tax returns. The three most common mistakes do not understand what they can claim as a deduction, not keeping good records, and underestimating expenses.
  • Another common mistake is overestimating income. This is especially true if you are getting paid under the table or selling illegal substances. If your expected income is higher than what you end up making, then some of your deductions might not be able to be claimed on your tax return because they would exceed the standard deduction. Many small business owners also underestimate their expenses because they simply do not know all the potential deductions available to them.
  • If you are self-employed and have filed a Schedule C with your tax returns, make sure one or more of these common mistakes are not part of your current filings! Our professionals at Golding & Golding are happy to provide free consultations to help business owners understand their deductions and get the most back from their taxes.
  • Filling out tax returns can be incredibly complicated, especially for small business owners who may not know what they can claim as a deduction on their taxes. One of the most common mistakes made by small business owners does not understand what they can claim as a deduction, not keeping good records, and underestimating expenses.
  • Another common mistake is overestimating income. This is especially true if you are getting paid under the table or selling illegal substances. If your expected income is higher than what you end up making, then some of your deductions might not be able to be claimed on your tax return because they would exceed the standard deduction. Many small business owners also underestimate their expenses because they simply do not know all the potential deductions available to them.
  • If you are self-employed and have filed a Schedule C with your tax returns, make sure one or more of these common mistakes are not part of your current filings! Our professionals at Golding & Golding are happy to provide free consultations to help business owners understand their deductions and get the most back from their taxes.

Conclusion by AronGovil:

The three most common mistakes made by small business owners when filing their taxes do not understand what they can claim as a deduction, not keeping good records, and underestimating expenses. Another common mistake is overestimating income, especially if you are getting paid under the table or selling illegal substances. If you are self-employed, make sure you don’t make any of these mistakes! Our professionals at Golding & Golding are happy to provide free consultations to help business owners understand their deductions and get the most back from their taxes.

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