4 Tax Tips for Travel Agents
Written by: Sydney M on April 06, 2020
Taxes can be a headache, especially for small business owners, like travel agents. What materials do you need to gather? How do you know if you have everything? How can you make it easier for 2021? These four tax tips for travel agents will help you through this tax season and in the future.
The deadline to file your taxes in the United States has been extended this year. Rather than the usual April 15th date, we have until July 15th to submit tax documents. While that gives us more time to gather our materials together, getting them done now means you can save time when travelers are ready to book again.
Know your deductions
Can I deduct travel expenses for a FAM trip? Can I deduct the cost of my work computer? Is there a deduction for my home office space? There’s a lot of things that go into running a small business, from the tools you use to the space you work from. That also means that there are many deductions that travel agents can claim on their tax returns. It’s best to keep track of your business expenses throughout the year so that when tax time comes, you have record of what deductions you may be eligible for.
Keep those receipts organized
With any deductions you take, you’ll want to have the proof to back them up. That’s why keeping your receipts organized is so important. It’s helpful to file receipts in a dedicated place or folder in your email so that you can keep track of them throughout the year. This will help you keep from deleting important messages or having to search through your entire inbox when tax times comes.
Work with a professional or at least professional software
With deductions, business expenses, and independent contractor forms, you may have more information to fill out on you tax forms or may have questions about what should or should not be included. That’s why it’s always a good move to have a tax professional’s help!
Consider working with a local tax professional. Not only can they help you during tax time, but they can be a resource for your questions throughout the year. However, if you intend to do your taxes yourself, use a tax software that can walk you through the options for your small business filings. Many of these online programs also offer live support and have professionals available to review your tax returns.
Budget for your taxes
Owning a small business often means that taxes aren’t automatically withheld from income you receive. That’s why it’s important to understand your business’s financials and plan for tax season all year long. Working with a tax professional or an accountant can help you understand how to budget for tax payments at a federal, state, and local level so that you aren’t surprised when you go to file.
Are you ready to start your own travel business and become a travel agent? KHM Travel Group supports people across the United States start and grow their travel businesses. For more information fill out the form to the right or give our team a call at 1-888-611-1220.