What You Need to Know About 2025 Tax Season in 2024
Audio version available here (2 min.)
2025 is right around the corner. As we head into the new year, you’d be surprised at how quickly tax season will be upon us. In fact, as a business owner, you have several vital tax deadlines in January alone. There are several other important factors to keep in mind before 2024 ends, so stay tuned for the right guidance.
Though we have less than two weeks left in 2024, you do have the chance to lower your taxes if you’ve realized your tax burden is more than you originally anticipated. Safe harbor rules allow you to deduct certain business expenses you would normally incur in 2025, as long as you initially pay them in 2024. All you need are accurate records of these expenses occurring before or on December 31st. For example, you can buy equipment you know your business will need for 2025 in December. By keeping receipts that show these transactions did actually occur in 2024, you can substantiate a business expense deduction on your 2024 tax return. Want to know what else you can deduct? We have a list of business expenses in our latest YouTube video.
In January 2025, you have several tax deadlines. Firstly, your final quarterly estimated tax payment for 2024 is due on January 15th. This applies to businesses and taxpayers who do not typically have taxes withheld from their paychecks, such as 1099 independent contractors.
Speaking of contractors, businesses must file income statements (Form 1099) for all contractors by January 31st, 2025. In order to file a 1099-NEC properly, you will need a signed W-9 from the independent contractor with their taxpayer information. Without a W-9, you could be unable to file the 1099-NEC on time. The consequences for this include penalties (up to $660 per form) and not being allowed to deduct the contractor’s pay as a business expense.
If you have employees, January 31st is the deadline to file and distribute all W-2s and your W-3.
While most tax returns aren’t due until April, you need to be prepared a lot sooner than you might think. For last-minute tax advice, you can reach out to XQ CPA’s tax professionals by phone or by booking an appointment at the link below. We’ll be happy to provide guidance. And for 2025 tax help, we are ready to work with you.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
Sources:
Want to save $10,000 in taxes? Read XQ CPA's official tax planning guidebook! How to Grow Your Wealth Through Tax Planning.
Comments