If you’re a contractor or tradesman working in San Diego County, California, tax season can feel overwhelming—especially if your books are behind or your income is inconsistent. Whether you’re a general contractor, electrician, plumber, or other skilled tradesperson, preparing ahead is key to reducing stress and maximizing your refund (or minimizing what you owe).
At James D. Miller CPA, we work closely with contractors across Southern California to help them prepare, file, and plan with confidence. Here’s a simple but powerful tax preparation checklist to help you stay organized and compliant.
1. Gather Your Income Records
Most contractors have income from multiple sources:
- 1099-NEC forms from clients or general contractors
- W-2s if you’ve worked part-time as an employee
- Records of cash payments or checks received directly
- Income from side gigs or subcontracting work
Pro Tip: If you’re using invoicing software like QuickBooks or Joist, pull year-end reports to verify what you’ve been paid.
2. Organize Your Business Expenses
Don’t leave deductions on the table. Organize and total your:
- Vehicle mileage and fuel (work-related only)
- Tools and materials
- Job site supplies (paint, wood, pipes, nails, etc.)
- Mobile phone and internet (business percentage)
- Home office or workshop expenses
- Trade licenses, insurance, union dues, and certifications
- Marketing (website, signs, flyers, online ads)
Even small expenses like safety gear or business lunches can add up—log everything you can substantiate.
3. Review Subcontractor Payments
Did you hire a helper or other subcontractors? If you paid anyone over $600 and they’re not on payroll, you’ll need to issue Form 1099-NEC.
- Gather W-9 forms from all subs
- Keep payment records
- File 1099s with the IRS and send copies to recipients by January 31st
4. Ensure Estimated Taxes Are Accounted For
Most self-employed tradesmen in San Diego County must make quarterly estimated tax payments. If you missed one or more payments, you could face underpayment penalties.
James D. Miller CPA can calculate and schedule these for you, so you avoid surprises.
5. Track Equipment Depreciation
Larger purchases—like compressors, ladders, trailers, or trucks—may qualify for depreciation or a Section 179 deduction. These write-offs can drastically reduce your tax bill, but they must be handled correctly.
6. Check Local Compliance
San Diego County contractors may also be subject to:
- California state income tax filing
- Sales and use tax reporting (if selling materials)
- Local business license renewal requirements
A professional who understands California contractor tax law can ensure you’re covered on all fronts.
7. Decide: DIY or Pro Help?
Filing your own taxes may work when you’re starting out, but it can get risky as your income grows, especially if you’re mixing cash, 1099s, W-2s, and equipment deductions.
James D. Miller CPA helps contractors:
- Maximize deductions
- Prepare and file federal and California tax returns
- Avoid penalties and audits
- Plan proactively to reduce future tax bills
Final Thoughts
Getting your taxes right isn’t just about staying legal—it’s about keeping more of what you earn and planning for growth. If you’re a contractor in San Diego County, tax season doesn’t have to be painful—with the right preparation and the right partner, it can even be profitable.
Need help preparing your taxes as a San Diego tradesman?
Contact James D. Miller CPA today for expert support, honest answers, and a smoother tax season.