- Elect S Corporation status. If your sole proprietorship or partnership is producing a net profit in excess of a reasonable compensation for your time, you could save money by incorporating and electing S status. The deadline for making an election for calendar-year 2016 is March 15.
- If you had self-employment income in 2015, you can contribute to a SEP or a Keogh pension plan. (The Keogh had to be in place by December 31, 2015.) Contributions can be made up to the due date of your 2015 tax return, including extensions.
- Schedule your tax appointment well before the filing deadline. Afterward, you may need time to chase down missing records or resolve other problems before the deadline.
- Check for carryover items that could reduce your 2015 taxes. Check prior years for unused items such as capital losses, investment interest expense, business operating losses, and charitable contributions.
- Maximize your child care credit. If you and your spouse are both employed at full- or part-time jobs, make sure you get the maximum benefit from the child care credit. When calculating the credit, remember that you may be able to include the cost of day care, nursery school, babysitting, and summer day camp.
The information on this site is general in nature and should not be acted upon in your particular situation without further details and/or professional advice. For assistance, contact our office.