Independent? The guide to help you stop being afraid of the annual report

Another moment will end this year, and the self-employed you will be required to submit the annual report. For those who use the services of an accountant, and for those who choose to do it alone - you should know the process from start to finish. After all, only you will know how to take care of your money

If you are married to the IRS on both of you (Photo: ShutterStock)

Couple checking bank account (Photo: ShutterStock)

The words "report" and "income tax" sound boring and frightening, but you'll find this is a simple annual report where your business income and expenses are filled throughout the year. The report allows the IRS to keep track of your financial activity, with the final tax calculated to be paid for a year. By calculation, you will know if you have to pay an additional tax amount or maybe get a refund.

When it comes to Company Ltd. or an authorized business that runs a complex business, you can make a living for yourself and employ or use an accountant who regularly manages the income and expenses for the year and coordinates the data. The accountant completes the annual report and, if necessary, also represents you in conducting In front of the IRS. You want to run the business quietly, don't you?

If you run a small business on your own and want to save on the expense of an accountant, you can fill out the report yourself.

The report can be divided into four parts:

1. Personal Information - If you are married the IRS file is registered on both of you. You can choose who the spouse will be as a registered spouse, or submit two separate reports. It will not change the amount of tax you have to pay.

2. Personal income - that's the heart of it - here you fill the income from the annual business cycle. In this section you will indicate if you are receiving money from other employers, Social Security or renting a home and more.

3. Expenses - You must declare relevant business expenses such as employee wages, marketing expenses, hiring an office, paying accountants and more.

4. Credits and credits - This is the part where different parameters can earn you a reduced tax credit. Divorces that pay out alimony, single parents, housing in certain localities, new immigrants and more can give you credit points.

It is advisable to consult a tax advisor who can guide you on the relevant documents that will provide the information and also help you save hundreds and even thousands of shekels by exercising the rights and credits you may have.

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An accountant or tax advisor can guide you how to fill out (Photo: Walla system! NEWS)

Annual report to the IRS (Photo: Walla system! NEWS)

The information you will gather in preparation of the report

If you are an employee and you also have an exempt / authorized dealer, attach form 106 from the employer.

A form from the bank that concentrates earnings and losses on securities (Form 867, if you have capital market investments).

Copy a valid lease if you have rental income.

Annual tax approval for life insurance premium payment.

Annual Social Security approval of funds you received.

How do I submit? Fill out the report online at the Internal Revenue website, print its final version, and submit it physically when signed, along with the attached documents, to the IRS officials. The report must be submitted by April 30 or May 31, after the tax year, Depends on the type of business. If you are late, you will be fined.

You submitted the online report and printed it, but found that you did not fill in well or want to add data? No problem. Please log in and re-enter. It is advisable to save the file on your computer, to go through it and make sure. As long as you have not submitted the printed report signed to the IRS together With the required documents, it can be re-updated in the system and is not considered to be filed.

Fill in and submit an annual report: Do's and Don'ts

did

• Use an online invoicing service - much easier, simple and neat in the eyes. You send invoices by email, you have a monthly income and expense report, a tidy list of clients and manage your online financial balance from anywhere.

• Completing the report requires time and concentration - fill it in when you are alone, with the relevant paperwork in hand, and after you finish you will go again - section by section - making sure you haven't missed it.

• The business expense section can save you a tax payment because you can get reimbursement for some of the expenses. Consult an accountant or tax advisor about the type of business expense. The tax authorities have a long list of expenses that can be included, but each one fits the type of business.

Don't do it

• Do not wait until the end of the year to concentrate all the financial data of the business. Doing this every month will help you stay organized and be faster and more efficient in submitting your report.

• Do not begin to complete the report until you have verified that you have all the relevant paperwork in your hand.

• Under no circumstances do you reject the filing and filing of the report. Wouldn't you like to miss the filing date and spend money on fines?

Yes, a look at Form 1301, which is the annual income tax report, can be confusing due to the multiplicity of clauses and the accuracy of the data. "In your place, saving you time, effort and money, because inaccuracies in fulfilling them will make mistakes you pay for them. Successfully!