Issue link: https://www.massageandbodyworkdigital.com/i/557366
F r e e S O A P n o t e s w i t h M a s s a g e B o o k f o r A B M P m e m b e r s : a b m p . u s / M a s s a g e b o o k 93 If you're like many massage professionals, you don't pay much attention to income taxes until the filing deadline looms. "That can be a costly mistake," says Jay Blumenthal, a public accountant in Abington, Pennsylvania. "One of the most effective ways to pare your taxes to the legal minimum is to make tax planning a yearlong effort." Genevia Gee Fulbright, CPA, agrees. "Proactive tax advisors suggest you take an active role in tax reduction strategies throughout the year," she says. "Because tax laws change often, it's best not to wait until the end of the year, or after, to decide whether you can take advantage of important tax deductions." While it's only natural for you to devote the biggest share of your time to maximizing your income, it's important to remember the draining effect that taxes have on those pretax dollars. Here are some easy tax-planning tips that will help you maximize your net income in 2015 and beyond. 1. CONTINUALLY ORGANIZE YOUR RECORDS "If you scramble at tax time looking for receipts and other records to pass along to your accountant, you're probably missing out on some healthy deductions," Blumenthal says. "By keeping your records up to date, you'll make your accountant's job easier next April—and an easier job for your accountant means a savings on your tax preparation bill, as well as your taxes." 2. LOOK FOR DEDUCTIONS YOU MAY HAVE MISSED L AST YEAR Many taxpayers miss out on important deductions by waiting until the last minute, say the pros. "I'm willing to bet that every taxpayer misses at least one deduction on their tax return each year," says Roni Deutch, tax attorney and author of The Tax Lady's Guide to Beating the IRS (BenBella Books, 2009). "Keep receipts for everything," says Bridget Crawford, professor of law at Pace Law School. "The cost of office supplies and Internet service are easy to track, but keep in mind the 'minor' expenses that keep your practice going day to day." 3. USE LOANS AND CREDIT CARDS WISELY "Most of the time, financing purchases on your credit card is a bad idea," Deutch says. "However, since the interest paid on business expenses is tax deductible, there are exceptions, especially toward the end of the year when you need to rack up a few more deductions. Simply pay some business expenses or purchase some office supplies on your business credit card just before December 31, 2015. You get the deduction on your 2015 tax return, but you don't have to pay the bill until next year."