Tax To-Do Items for 2014

The holiday celebrations are now done, 2014 is here and it’s time to make sure all the tax related items are properly addressed…but what are they? Here’s a list of five key items to attend to in the next few weeks.

1. Estimated Taxes – If you anticipate owing taxes and haven’t already made payment through your wage withholdings or prior estimated taxes, now is the time to make the payment. The last estimated tax payment for 2013 is due by January 15, 2014 in most cases. If you make it by that date, you won’t incur an underpayment penalty. If you’re not sure whether or not you’ll owe, contact your tax professional for assistance.
2. 1099 Forms – If you (or your business) paid funds to others for services or other expenses that exceeded $600 for the year, you may need to issue them Form 1099-Misc. The forms are due by January 31, 2014 to the individual and shortly thereafter to the IRS along with form 1096.
3. Gather Records – start gathering your tax records for your return professional. The better organized your records are, the easier and faster the process will be for both of you. Make sure to include copies of your prior returns.
4. Last Minute Contributions – Some deductible contributions (such as to retirement plans) can be made even after December 31 of the tax year. If you think it will help reduce your taxes, you should consider making a contribution before the deadline. If you’re not sure, check with your tax professional.

And it never hurts to contact your tax professional to cover any specific items and questions you have about the past year and how certain events should be handled. By taking action now, you’ll be able to beat the rush and get your returns completed and submitted well before the deadline.

By: Evan A. Nielsen (Licensed in California)

Have more questions? Want to schedule a free consultation and have Evan take a look at your taxes? Call (480) 888-7111 or click here to schedule your free consultation!