Overview
Tax season can be overwhelming for therapists juggling busy schedules and complex finances. Consider this your Guide to Annual Taxes with Heard. This comprehensive guide outlines the critical tasks you’ll need to complete to ensure an on-time and accurate filing with Heard. From onboarding to filing, our dedicated team is here to support you every step of the way.
Important Filing Timeline
By March 1st, 2024
Complete your extension request survey (estimated time is 5 minutes).
Please Note: This only applies to therapists who joined Heard before March 1st, 2024, have filed an extension, or are filing late.
By July 1st, 2024
You gather and submit your catch-up bookkeeping documents (estimated time is 30-60 minutes). For a comprehensive overview of the required documents, please see the article Completing your 2023 Bookkeeping for On-Time Tax Filing.
- Connect your designated business bank account(s) to Heard.
- Upload bank statements for all connected bank accounts from Jan 1, 2023 - Dec 31, 2023, or all months for which the bank account was open.
- Upload your Tax Report from your EHR/EMR/Credit Card processor.
- If you use a payroll provider such as Gusto, upload your 2023 Form W3 and Contractor Payment Report.
By August 1st, 2024
Close out your 2023 bookkeeping (estimated time is 30-60 minutes):
- Review any outstanding transactions flagged by Heard, add in any missing business or expense transactions, and check your final numbers for tax accuracy and to maximize deductions.
- During this step, you can recategorize any transactions or leave notes for your bookkeeper to categorize them for you.
- Once your bookkeeper has completed your requests, you'll receive an email confirmation. We'll ask you to complete one final review and approval of your 2023 books to consider them closed.
By September 1st, 2024
You complete your Business Tax Checklist Form 1120-S; you and Heard close your 2023 bookkeeping (estimated time is 30-60 minutes):
- Confirm your business information and upload relevant tax forms. We’ll guide you on which documents to upload.
- Clarify any outstanding transactions, add in your business income, and check your final numbers for tax reporting and to maximize deductions.
By October 1st, 2024
You complete your Personal Tax Checklist Form 1040 (estimated time is 30 minutes):
- Confirm your personal and financial information, fill us in on any significant changes in 2023, answer a few questions about your personal expenses, and upload relevant tax forms based on the information you provided.
Avoiding or reducing penalties
It’s important to note that if you did not file an extension, you are accruing both failure to file and failure to pay penalties and interest.
The Failure to File Penalty applies if you don’t file your tax return or extension request by the due date. The IRS calculates the Failure to File penalty based on how late you file your tax return and the amount of unpaid tax as of the original payment due date (not the extension due date). In addition, interest is due as it accrues. This is why we recommend filing your taxes as soon as possible.