Tax Talk: 3 Things You Just Need To Do
Whether you’re a company driver, owner operator, own an entire fleet, or even work in an entirely different industry; I am willing to bet that you invest your time and focus to make a living for you and your families benefit, and not the IRS's. I would also wager on the fact that you don’t desire or need any more problems and stress than you already carry with just your everyday life and responsibilites that come with it. I also know that I have never once had a client call me to help fix their tax problem, that actually planned and executed a strategy on getting into that position in the first place. I mean, I would like to think that I am the"most fun tax guy" out there and clients enjoy talking to me about their taxes, but I would risk it all against that being the case! Taxes suck, there is no way around it.
Here are 3 tips that will save you that time and money, make sure your life is easier when its tax time, and of course and most importantly- provide you the best opportunity to never have to call those "fun tax guys" about getting out of a mess that you could have avoided.
#1 Update your info. Your mailing address is the key! I am not just talking about the IRS, but rather the vendors, banks, employers, and health care companies that will be sending you those end of the year tax documents that you will need to file your taxes correctly. Why risk missing an important tax document that could potentially save you money? Those of you who move frequently and/or are on the road all the time, either get a post office box or use a family member’s address that you know will not be changing anytime soon. Whatever works for you. Just figure it out, and then get it done, rather than pushing it off and wind up forgetting about it all together. This simple "tip" will provide you the confidence that you are not missing any tax document that can potentially add to your deductions.
#2 Track it all, all the time. I can’t emphasize this enough. Income and expenses don’t happen once a year, they happen every day. Aside from your day to day business transactions, financial matters arise out of nowhere. Tomorrow, you might just change employers or get a new contract, another day you may decide to buy or sell a home, or worse, have to pay for a loss due to a flooded basement. Maybe you may take advantage of a new investment opportunity. Since there is no way to predict what financial matters will arise on a day to day basis, you need a solution that will help track your finances accordingly. There are multiple options and solutions to track income and finances. Obviously, you can hire a bookkeeper to manage this for you, and if you are self employed, I honestly recommend it.. However, there are also an abundance of free digital and mobile applications that can make it easy for you to do it yourself, and better, while you are on road-and in real time.. Bottom line, this will be the only way you can ever be sure that you maximize every expense that you may be entitled to.
Get Help. If you are like 99% of the people I know (and I’m not just taking about drivers), you don’t have the time to keep up with the annual changes in tax code. Depending on your knowledge and understanding, these constantly evolving tax laws either can save you, or cost you, thousands every year. So instead of trying to save a couple hundred bucks, trying to prepare your return yourself, just hire a professional. Help ensure that you are taking every deduction and credit that might be entitled to you. Time is money, and you can easily find yourself wasting hours trying to figure out these on-line tax preparation software programs. They are never as easy, and hardly as cheap as advertised. In addition to the time and money you are risking, add the potential for identity theft. A large percentage of tax identity theft scams are the result of taxpayers filing their own returns via online tax preparation service. Even the big boys you see on television (every five minutes during tax season) have been compromised. Don’t believe me? Google It!
Risk vs. Reward? At the end of day, the government mandates that we all prepare and file our tax returns in a timely manner, however, they also place the burden on each of us to be prepared on time and have complete comprehension about our tax laws in order to pay the least amount of tax at the end of every year. By applying these three tips, not only will you be prepared at tax time and have confidence that you did everything you could to not leave money on the table, but you will also minimize the risk of a potential tax problem that thousands of our tax clients are dealing with every day. As I am always asked “What’s the best way to fix a tax problem?” My answer is always the same, “Prevent it from happening in the first place.”
About the Author: Nick Charveron, is a licensed tax practitioner & Co-Founder of Big Rig Tax Relief LLC, a Tax Company focused on Tax Debt Resolution Services. Nick was a motor transport operator (88M) while enlisted in the Illinois National Guard, US Army. Email Nick at [email protected]