Navigating the 2024 Tax Season: A Guide for Businesses
ARTICLE | January 13, 2025
Authored by Schlenner Wenner & Co
As we delve into the new year of 2025, it's imperative to prepare for the 2024 tax season. While this process can seem daunting, with proper planning and a structured approach, businesses can ensure a smooth tax filing. This article provides a strategic guide to help your business stay organized, understand new tax law changes, and maximize your tax benefits.
Maintaining accurate and up-to-date financial records is the cornerstone of a smooth tax filing process. These records include income statements, expense documentation, payroll records, and previous tax returns. Having these documents at your fingertips will facilitate a quicker and error-free tax filing.
Reconciling your bank accounts, credit cards, and other financial accounts is crucial to ensure all transactions are correctly recorded. Unreconciled accounts can lead to discrepancies, potentially hindering your filing process.
One of the most effective ways to optimize your tax benefits is by maximizing deductions and credits that apply to your business. These can range from home office expenses, equipment purchases, and depreciation, to employee benefits, training costs, and business travel expenses.
Simultaneously, it's essential to prepare your 1099s and W-2s, particularly if you've hired contractors in 2024. Ensure you file and distribute Form 1099-NEC to those earning $600 or more and Form W-2 to your employees by the January 31 deadline.
Moreover, the SECURE 2.0 Act provisions effective this year are also worth noting. Beneficiaries of certain 529 college savings plans can now roll over the money in their account to a Roth IRA, with a lifetime rollover maximum of $35,000.
The 2024 tax season also brought about new IRS limits for retirement plans. Employees participating in 401(k), 403(b) plans, or the federal government's Thrift Savings Plan can now contribute up to $23,000 per year, with a catch-up contribution for employees aged 50 and over of $7,500.
Finally, the hybrid and remote work landscape has brought about new tax implications. Different states have varying tax policies, and it's crucial to understand how these can impact your business. Consulting with a tax professional can provide valuable insights into these complexities.
In conclusion, tax readiness is an ongoing process that extends beyond filing. 2024 brought about significant changes in tax laws, and it's paramount to stay abreast of these alterations. With accurate financial records, understanding of tax laws, and strategic planning, businesses can navigate the 2024 tax season with ease. By turning to professionals, you can ensure compliance with federal and state requirements, avoid penalties, and even identify opportunities for tax savings.
We look foraward to answering any questions you may have regarding these tax changes.
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