ROANOKE, Va. – Tax experts say while it might be October, tax season will be here before you know it.
Neely’s Accounting Services CEO Charles Neely said they are still waiting on the election’s outcome to see what changes there are regarding taxes.
However, the standard deductions will be changing for 2025 income that will be filed in 2026.
If you’re filing married, it will be $30,000, and if you’re filing single, it will be $15,000.
The tax brackets have also changed to reflect a 2.8% increase for 2024.
Neely said these numbers have changed because of inflation.
He also said Governor Glenn Youngkin said there will be an extension for the Virginia filings due to Helene. However, he is not sure when that will be yet.
While tax season begins in January, Neely said you should start getting ready now.
“If you haven’t made a quarterly estimate or you need to look at your income for this year, the January 15th estimate is coming up soon. You need to make an appointment with your tax professional to get in and determine if you need to make that estimate so you don’t have to pay the government interest in penalties for underpayment or not paying enough money,” said Neely.
Small business owners must report to the IRS who owns the company as part of the Beneficial Ownership Information. If they don’t fill this out, they could face a heavy fine.
You’ll also have to report silent partners. Nelley’s Accounting Services said the IRS is trying to prevent fraud.
“It’s absolutely imperative because there’s a fine. There’s a $10,000 fine if you don’t do it, so if you own a small business—even though it’s just a landscaping business or a plumbing business or you sell Mary K—you have to still register that business with the BOI,” said Neely.
B&D Comic Shop owner Terry Baucom, who’s owned the company for about 40 years, said the Beneficial Ownership Information is a good thing for businesses.
“Anytime you have something that will legitimize your own business, I think it’s helpful for everyone. Just the fact that people work so much harder on scams than they do in real jobs,” said Baucom.
You have until Jan. 1 to file the report, if your company was created before January this year. Companies created this year have 90 days to file.