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3 Easy Tips for Calculating Your Tax Liability

Posted by Admin Posted on Aug 03 2020

If you are an entrepreneur in Las Vegas, you probably see a lot of revenue. Most business owners use accounting firms in Las Vegas to handle their taxes. This is smart but you should also be able to estimate your own tax liability. Here are a few tips to help you do that.


Look at Your Past Tax Liability


One great way to estimate how much your taxes will be is to look at past tax returns. While doing this will not give you an exact amount, it's a great way to get a ballpark figure. Was your revenue twice the amount of a past return? That means you might owe twice as much in taxes. Of course, other factors affect the amount, but doing this can give you a quick calculation of a number you can work with.


Know How Much Taxes You Pay


Just because your accountant knows the percentage of taxes you pay does not mean you should not know. When you know the percentage of your state and local taxes, you can do a quick calculation to get an estimate on your tax debt. This will not account for special tax circumstances, but you just need an estimate at this point, and this is a great, informed way to get one.


Use an Office or Tax Software


There are plenty of easy-to-use tax software products for entrepreneurs on the market that can calculate your tax liabilities. You could even use a basic spreadsheet program to calculate your taxes. If you keep your records up to date, the software will do the rest.


Calculating your own taxes is not hard. It's a matter of keeping good records and using the tools you have around you. Past tax returns, tax or office software, and a little knowledge about your local and state tax rates go a long way. Using the 3 tips above will keep you on the right track with your taxes.