Truck drivers work diligently all year round, but their efforts become particularly evident during tax season. As tax season approaches, truck drivers may be able to reduce their tax bill by claiming certain deductions […]

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Savings on the Road: Tax Deductions for Truck Drivers

New York and California are attractive states to establish businesses due to their bustling industries and high population centers. However, that popularity comes with a price: higher operational costs and tax rates, which is why many owners and entrepreneurs are looking elsewhere to establish their businesses, including one of the most business-friendly states in the country, Florida. Its economy and industries have continued to attract small businesses who appreciate the state's tax-friendliness and pro-business culture.Want to know <a href="https://1800accountant.com/blog/start-business-florida">how to start a new business in Florida</a>? Then, you should forget about federal tax and the Internal Revenue Service (IRS) for a moment because you’ll want to know about state taxes. Use this comprehensive guide to everything you should know about <a href="https://1800accountant.com/blog/florida-small-business-tax">Florida's small business and corporate tax rates</a>.<h2>How Do Business Taxes in Florida Work?</h2>Only C corporations pay state income tax in Florida. No other business entity has this requirement, including limited liability companies (LLCs) and S corps, which are pass-through entities.If you're one of the following corporation types, you must file taxes in Florida. This includes business owners and corporations earning income, corporations operating in the state, and organizations with tax exemptions.<h3>Key Takeaways</h3>Use this guide to learn how the entity your business is formed as is taxed, why it is beneficial to operate in Florida, and other important takeaways, including:<ul><li>Whether individuals <a href="https://1800accountant.com/blog/how-much-do-small-businesses-pay-in-taxes">pay taxes in Florida</a>&nbsp;</li><li>Tax responsibilities of Florida-based pass-through entities</li><li>C corp state tax protocols</li></ul><h2>Florida Corporate Tax Rates</h2><h3>How are C Corporations taxed in Florida?</h3>Florida businesses operating as corporations must file Form F-1120 to report their income to public records, even if they won’t have taxes due. They must also file annually using Form F-1120.You must calculate the Florida corporate income base and rate to determine how much you owe on your C corp business tax return. The tax base is a formula consisting of three factors:&nbsp;<ul><li>Payroll (25%)</li><li>Property (25%)</li><li>Sales (50%).</li></ul>Then, you’ll add non-business income and subtract an exemption to determine your net income. The current net income exemption is $50,000 and can only be used once among the members of a controlled group of corporations. After determining your net income for your Florida business, you’ll figure out your tax rate.The current corporate income tax rate in Florida is 5.5%. Florida offers several corporate income tax incentives that will help your business reduce the amount owed. Potential incentives include:<ul><li>Capital Investment Tax Credit</li><li>Community Contribution Tax Credit</li><li>Florida Alternative Minimum Tax Credit (AMT)</li><li>New Markets Tax Credit</li><li>Rural Job Tax Credit</li></ul><h3>How are S Corporations taxed in Florida?</h3><a href="https://1800accountant.com/blog/start-s-corp-florida">Taxes for an S corporation</a>, or S corp, are unique in Florida. Compared to a C corporation, S corps aren’t subject to federal income taxes because S corps are pass-through entities.Instead, the business will pass federal income tax on the annual income of its owners, called shareholders. Individual federal income tax rates determine this amount. Florida does not feature a state income tax.&nbsp;<h2>Florida Tax Rates for LLCs</h2>Like S corporations, Florida LLCs operate as pass-through entities. This means that if you start an LLC in Florida, the business won’t pay federal income tax on that income.<a href="https://1800accountant.com/blog/llc-florida">LLCs have a few options</a> regarding how they’ll pay Florida business taxes, which include:<ul><li>A disregarded entity</li><li>An incorporated LLC, or</li><li>A partnership</li></ul>Disregarded entities (single-member LLCs) in Florida don’t have to file a second Florida corporate income tax return. In this scenario, you would use the LLC owner’s return, whether your Florida LLC is owned directly or indirectly by a corporation.A corporation that owns a single-member LLC must also file a Florida corporate income/franchise tax return to report:<ul><li>Its own income</li><li>Single-member LLC’s income, even if ownership of the LLC is the corporation’s sole business activity</li></ul>While uncommon, incorporated LLCs must <a href="https://dos.fl.gov/library-archives/research/florida-information/business/starting-a-business-in-florida/small-business/taxes/" target="_blank">pay state income taxes</a>. In this situation, the income tax rate is either 3.3% (the alternative minimum tax) or 5.5%.To file income taxes as an LLC classified as a corporation, you’ll complete a Florida corporate income/franchise tax return. LLCs classified as corporations will file Form F-1065 if one or more of its owners is a corporation. Any owner of this LLC type must also file a corporate income tax return.<h2>Partnership Business Taxes in Florida</h2>You can choose from <a href="https://www.stateofflorida.com/taxes/" target="_blank">three partnership types in Florida</a>.&nbsp;&nbsp;&nbsp;<ul><li>General partnership. A general partnership involves at least two people who own the business. Its partners can individually enter binding agreements, business deals, or contracts, which might be advantageous in certain circumstances.&nbsp;</li><li>Limited partnership. A limited partnership also consists of two or more partners, which can be one or more general partners who operate the partnership with unlimited liability or one or more limited partners who don’t operate the partnership without liability.</li><li>Limited liability partnership. A limited liability partnership has two or more partners. Unlike a limited partnership that can feature general or limited partners, all partners are considered general partners who operate this type of partnership. Partners in a limited liability partnership have both limited and shared liability.</li></ul>All three partnership types are pass-through entities, resulting in federal income from the partnership to each partner for individual tax payments.&nbsp;<h2>Sole Proprietorship Taxes in Florida</h2>Sole proprietorships are perhaps the <a href="https://1800accountant.com/blog/how-to-register-a-small-business-in-florida">easiest business entity to form in Florida</a>. This business entity indicates that the small business owner will solely operate their own business.As a result, sole proprietors must file federal income taxes. However, their income is individual, not based on their business. The sole proprietor will then pay taxes based on an individual’s tax rate.And because a sole proprietorship isn’t a corporation, a sole proprietor also won’t have to pay state taxes in Florida.&nbsp;<h2>Taxes for Multistate Businesses in Florida</h2>If your business operates in multiple states, you may also owe taxes in those states, which is called a tax nexus. A tax nexus indicates you've exceeded the minimum requirement for state officials to collect tax from your out-of-state business. Tax nexus rules vary by region, so reviewing them before entering each respective market is best.&nbsp;In addition to nexus considerations, given the size of Florida and its proximity to other states in the panhandle region, there may be some unusual tax situations you or your employees may encounter. Scenarios include:<ul><li>You lived in two states during the same tax year.</li><li>You work in another state but live in Florida.</li><li>You work in Florida but live in another state.&nbsp;</li></ul>Florida does not participate in reciprocity agreements, which ensure that out-of-state residents pay income tax only in their home state.<h2>Other Florida State Taxes</h2>There are <a href="https://www.nerdwallet.com/article/small-business/small-business-grants-florida" target="_blank">additional taxes business owners</a> might also be responsible for in the state of Florida. These include:&nbsp;<ul><li>Use tax. A 6% use tax is due on using or consuming taxable goods or services when sales tax wasn't paid when purchased.</li><li>Sales tax. A 6% sales tax is included in the price of taxable goods or services and collected from the purchaser at the time of sale.</li><li>Unemployment tax payments. Florida-based employers pay the 2.7% Florida Reemployment Tax, which is deposited into a trust fund.&nbsp;</li><li>Excise tax. Items, including gas, cigarettes, cell phones, and alcohol, are subject to this tax.</li></ul><h2>Benefits of Having a Small Business in Florida</h2>Establishing your small business in Florida offers numerous benefits. The state is a popular tourist destination due to its bright, sunny weather. The tourism dollars, the state's business-friendly climate, and the world-famous cities of Miami and Tampa make Florida a popular destination for small business owners and entrepreneurs to live and work.While the labor market is competitive, it attracts the qualified professionals your business needs who can maximize the seasonal economy while minimizing lean periods.<h2>How to File Business Taxes in Florida</h2>These steps must be <a href="https://1800accountant.com/blog/prepare-file-small-business-tax-return">taken to file your Florida C corporation taxes</a>.&nbsp;&nbsp;&nbsp;<ol><li>IRS Form-1120. Corporations must file this form each year whether or not they owe money in taxes to governmental authorities.</li><li>Florida corporate income base and rate. Florida corporations must calculate based on payroll, property, and sales.</li><li>Net Income. Add non-business income and subtract an exemption to determine net income.</li></ol>After determining net income, the proper tax rate can be identified. Corporate tax incentives are also available, which can help reduce a corporation's overall tax bill.<div class="embedded-entry redactor-component block-entry" type="entry" data-sys-entry-uid="blt7626d80de5e39a0c" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div>Visit <a href="https://floridarevenue.com/taxes/taxesfees/Pages/corporate.aspx" target="_blank">Florida's Department of Revenue</a> for additional information.<h2>Work with the Professionals</h2>Florida small business tax rates vary based on numerous factors, including your business entity type. Regardless of how your business is structured, avoiding mistakes that can seriously impact your tax burden is imperative. That's why so many Floridians trust 1-800Accountant, America's leading virtual accounting firm for small businesses, for their needs.Whether it's <a href="https://1800accountant.com/services/locations/florida">Florida small business tax preparation</a>,&nbsp; <a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the solution you need at a price that fits your budget. Schedule a quick consultation – usually 30 minutes or less – to learn how we can help your business flourish in the Sunshine State!

Use this comprehensive guide to everything you should know about Florida's small business and corporate tax rates […]

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Florida's Tax Rates For Small Businesses and Corporations

Business owners interested in entering the New York market must understand the state taxes, regulations, and other financial responsibilities associated with running a small business in the region […]

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What to Know About New York State Small Business Taxes

Use this informative article as your checklist for the top deductions available for hairstylists and barbers […]

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Taxes 101: Deduction Checklist for Hair Stylists and Barbers

This article will help you understand Forms 1095-A, 1095-B, and 1095-C. We’ll explain who should file each form and what to report […]

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What Are Forms 1095 A, B and C (+ Which Ones You Need to File)

Forms 1095-A, 1095-B, and 1095-C: Which 1095 Form Should You File?

If you're in the midst of moving from hobby to side hustle, you probably have a grip on scaling up your production quality. But have you considered the tax implications? […]

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7 Tax Write-Offs for Content Creators to Pay Lower Taxes

The booming gig economy has made businesses like&nbsp;<a href="https://www.fastcompany.com/91007559/doordash-uber-lyft-new-rule-gig-work" target="_blank">Doordash, Lyft, Uber, and Instacart</a>&nbsp;household names. If you’re an&nbsp;<a href="https://1800accountant.com/blog/delivery-driver-tax-return">Instacart delivery driver</a>&nbsp;and have questions about your&nbsp;self-employment taxes,&nbsp;Instacart tax&nbsp;as a result of your work, or&nbsp;<a href="https://1800accountant.com/blog/1040-vs-1099" class="link">Form 1099-MISC</a>, this article is for you.Instacart customers select items online, such as groceries, that are available locally&nbsp;in stores. Once an order is placed through Instacart's mobile application or website, a personal shopper will physically go to the store to gather the items and deliver them directly to the customer's home. Services of this type were particularly popular during the pandemic, as were contactless delivery options. Whether you're new to Instacart or have worked there in a&nbsp;<a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor" class="link">freelance or contractor</a>&nbsp;capacity over the past few years, it's imperative to understand the changes made around&nbsp;IRS&nbsp;Form 1099 and how they apply to you. Use this great guide to learn where to find your Instacart Form 1099 and other pertinent information related to this essential form.&nbsp; &nbsp;<h2>How To Get Your Instacart Form 1099</h2>Starting in 2023, Instacart altered how it transmits the&nbsp;Instacart 1099&nbsp;to&nbsp;freelancers&nbsp;and contractors. Instacart now emails&nbsp;<a href="https://1800accountant.com/blog/types-of-1099-tax-forms" class="link">Form 1099 directly</a>&nbsp;to workers with the option of receiving this information physically by mail.If you have not received this form, check your spam folder and double-check that the contact information you submitted is correct and complete.&nbsp; &nbsp;<h3>Getting Form 1099 for 2021-22</h3>If you worked with Instacart in 2021 or 2022, there is a different process of obtaining Form 1099. Instacart previously worked with&nbsp;Stripe&nbsp;Express to provide this form. Contact&nbsp;Stripe&nbsp;support if you need help accessing your 1099 forms from this era. They should be able to resend an email link that will give you access to these forms.If attempts with&nbsp;Stripe&nbsp;support are unsuccessful, contact Instacart directly for assistance or&nbsp;<a href="https://shoppers.instacart.com/help/help_center/login" target="_blank" class="link">log in to your Shopper portal</a>&nbsp;for more information.&nbsp;<h3>Updating Tax Information on Instacart</h3>Freelancers&nbsp;and contractors who work with Instacart use the&nbsp;Instacart Shopper&nbsp;mobile application to perform their duties. You are able to update your tax information directly within the application if changes are required. If you cannot alter your tax information, contact Instacart for further assistance.&nbsp;<h3>What if You Didn’t Get Your Form 1099?</h3>You might not have&nbsp;<a href="https://1800accountant.com/blog/form-1099-nec-for-small-business-owners" class="link">received a Form 1099</a>&nbsp;from Instacart for a couple of reasons. It's possible that Instacart sent the form, but it was flagged as junk and redirected to your junk folder. It's also possible that you didn't make over the $600 threshold during the fiscal year, meaning you would not receive this form. Instead, Instacart would send&nbsp;IRS&nbsp;Form 1099-NEC. In this scenario, you would then use Form 1099-NEC to file your taxes and report your income.&nbsp;<h2>Tax Preparation&nbsp;and Filing for&nbsp;Independent Contractors</h2>As your career in the gig economy continues to grow, so will the complexity of your financial work. It's difficult keeping track of and keeping up with bookkeeping, transitions,&nbsp;income taxes, and other obligations while looking for&nbsp;<a href="https://1800accountant.com/blog/tax-deductions-food-delivery-drivers" class="link">every tax credit and deduction</a>&nbsp;to reduce your&nbsp;taxable income. That's why many&nbsp;gig workers,&nbsp;freelancers, and contractors trust 1-800Accountant, America's leading virtual accounting firm, to help them through the quagmire of legal and compliance requirements.Whether you need&nbsp;<a href="https://1800accountant.com/services/income-taxes" class="link">personal tax preparation</a>,&nbsp;<a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the affordable solutions you need to ensure you remain compliant. Schedule a quick consultation–usually 30 minutes or less—to learn more.<h2>Form 1099&nbsp;FAQs</h2><h3>What is Form 1099?</h3><a href="https://1800accountant.com/blog/what-is-a-1099" class="link">Form 1099 is a series of tax forms</a>&nbsp;commonly used by&nbsp;freelancers&nbsp;and contractors to report their non-W-2 income. While an employer would handle tax withholdings for their W-2 workers each pay period, non-employee contractors and&nbsp;freelancers&nbsp;are responsible for those withholdings. Businesses like Instacart will typically send the appropriate Form 1099 to&nbsp;freelancers&nbsp;and workers by the end of January.&nbsp;<h3>Who needs to file Form 1099?</h3>Workers who received income not from their employer, if they have one, are responsible for filing&nbsp;IRS&nbsp;Form 1099. The precise version of Form 1099 that you receive will depend on several factors, including income threshold. For example, if you made less than $600 during the fiscal year from a single source, such as Instacart, you will receive Form 1099-NEC. &nbsp;<h3>How does Form 1099 affect&nbsp;independent contractors?</h3>Form 1099 allows&nbsp;independent contractors&nbsp;to report non-employee income to the&nbsp;IRS. Submitting accurate tax filings by the deadline allows&nbsp;independent contractors&nbsp;to stay in good standing with the&nbsp;IRS&nbsp;while maintaining compliance.&nbsp;<h3>When should Form 1099 be filed?</h3>Freelancers&nbsp;and&nbsp;independent contractors&nbsp;will typically file their annual&nbsp;tax return&nbsp;and&nbsp;tax payments&nbsp;on April 15th, like most workers in America, around&nbsp;tax time. They are also responsible for calculating and filing&nbsp;quarterly taxes&nbsp;four times yearly.&nbsp;<h3>What happens if you don’t file your Form 1099?</h3>Shirking your tax responsibilities will lead to penalties and&nbsp;<a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers" class="link">increased IRS scrutiny</a>.&nbsp;IRS&nbsp;penalties aren't fixed and will continue increasing until the tax bill is paid or the penalties reach a certain ceiling. If you struggle to calculate or submit your tax bill by the deadline, engage experienced&nbsp;tax professionals&nbsp;who can help you.&nbsp;

The booming gig economy has made businesses like Doordash, Lyft, Uber, and Instacart household names. If you’re an Instacart delivery driver and have questions about your self-employment taxes, Instacart tax as a result of your work, or Form 1099-MISC, this article is for you […]

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Where to Find Your Instacart Form 1099: Easy Answer

Navigating the world of self-employment income and self-employment tax deductions presents unique challenges and opportunities, especially when it comes to managing tax savings and protecting your business. One significant benefit for self-employed individuals is the ability to deduct business insurance premiums. Understanding these deductions can lead to substantial small business tax savings and help secure your financial stability.This guide will walk you through the essentials of business insurance deductions and write-offs, including deducting health insurance premiums, ensuring you take full advantage of these tax benefits while reducing your annual tax liability.<h2>Eligible Business Insurance Deductions</h2>If the Internal Revenue Service (IRS) considers you self-employed, such as a sole proprietor, freelancer, or other small business owner, you may be eligible to deduct several types of business insurance premiums from your taxable income, which will help minimize what you owe on your tax return. Deductible business expenses include:<ul><li>Workers' Compensation Insurance: This insurance is essential if you have employees, as it covers medical expenses and lost wages for workers who get injured on the job and helps their dependents. It also helps shield you from employee lawsuits over these injuries. Most states require this coverage by law.</li><li>General Liability Insurance: This protects your business from third-party (non-employee) claims, including bodily injury, real estate damage, and personal injury. It is often a prerequisite for entering contracts with landlords, vendors, and other partners.</li><li>Commercial Auto Insurance: If you use a vehicle for business travel and business purposes, commercial auto insurance covers damages and liabilities related to business use.</li><li>Health Benefits for Employees: If you provide a health insurance plan or health coverage as an employee benefit, those health insurance premiums are deductible.</li></ul><h2>The Importance of Business Insurance</h2>Unexpected losses, such as business property damage, legal claims, or employee injuries, can severely impact your bottom line and disrupt your business operations. The proper insurance policy and pricing can help you avoid bankruptcy and out-of-pocket expenses while ensuring your business continues to thrive. Additionally, bundling multiple policies can be a cost-effective way to secure comprehensive protection.If you do not select a business structure to form as and you operate the business on your own, including independent contractors, the IRS will recognize you by default as a sole proprietorship. Forming a Limited Liability Company (LLC) provides a layer of protection for your personal assets against business-related lawsuits. However, without adequate business insurance, your LLC could still face significant financial liabilities, potentially leading to bankruptcy.<h2>What Is Not Tax Deductible?</h2>The IRS generally considers business insurance premiums as necessary business expenses, making them deductible from your taxable income. However, there are specific rules and conditions you must meet to claim these deductions.While many business insurance premiums are deductible, there are some exceptions, such as: payments into a self-insured reserve, disability insurance premiums, and loan protection insurance premiums.<h2>Find the Right Business Insurance Solution with Mylo</h2>Selecting the right business insurance is crucial for safeguarding your company against a wide range of risks. Our partner, Mylo, combines award-winning technology and licensed insurance advisors to help self-employed individuals find tailored insurance solutions. Mylo will recommend coverage for your needs and budget, show you quotes from multiple top carriers, and help you find the right policy at the best value. <a href="https://choosemylo.com/1800accountant" target="_self">Starting a quote with Mylo</a> is quick and easy. Protect your business income and maximize your tax deductions by finding the right insurance plan today.

Navigating the world of self-employment income and self-employment tax deductions presents unique challenges and opportunities, especially when it comes to managing tax savings and protecting your business […]

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Self-Employment Benefits Guide: Maximizing Business Insurance Deductions

Business taxes can feel complicated, and you don’t want to pay more than you owe. This article explains everything you need to know to file taxes as a DoorDash delivery driver […]

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Lower Your Tax Bill: 9 Doordash Tax Deductions to Claim Now

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