If you own a small business, you know that every dollar counts. When it comes to tax time, you want to make sure you take all the tax deductions you’re entitled to. Lower taxes means more money you can either put in your pocket or invest back into your business. Check out this ultimate list […]
Prior to the 2018 tax year, when you filed your personal income tax return with the IRS, you had a choice of three basic tax forms to select from: Form 1040, Form 1040A, and Form 1040EZ. The one you used depended on the deductions and credits you were planning to take. Well, no more. The […]
Going to be late filing your personal or business tax return this year? Maybe you had an illness or family emergency. Maybe you don’t have all the documentation you need, or maybe your business is going through a transition that caused you to be late in getting your numbers together. No matter your reason, if […]
Form 1040A is one of the three tax forms — along with Form 1040 and Form 1040EZ — that most taxpayers use to file their annual tax returns. Compared to Form 1040 and Form 1040EZ, Form 1040A is more of an in-between option. It is shorter and less detailed than the traditional Form 1040, and it also offers more […]
U.S. taxpayers use Form 1040 to file their annual income tax returns. Before 2018, there were 3 versions: 1040, 1040-EZ, and 1040-A. However, the IRS updated the Form 1040 and simplified the 3 versions into 1. What Changes Were Made to Form 1040? Forms 1040,1040A and 1040EZ have been replaced with one Form 1040 that all taxpayers will […]
As an owner of a small or medium-sized business, you’re faced with plenty of responsibilities, and reporting and paying unemployment tax – or FUTA tax – is one of them. With the FUTA tax, you must pay a rate of 6% on the first $7,000 of an employee’s wage. The funds generated from this tax […]
Owning a business has a major impact on how your taxes manifest each year, so it’s important the Internal Revenue Service is aware of any changes in your circumstances. According to section 1060 of the Internal Revenue Code, the IRS requires that you fill out and file Form 8594 when you’re buying or selling a business. Understanding […]
What is Self-Employment Tax? If you work for yourself, you’re required to pay a self-employment tax, which comprises Social Security and Medicare taxes. When you work for a business, your employer takes out 7.65% of your gross income to pay the federal government to fund Medicare and Social Security, while your employer pays the other […]
What is an S Corporation? When you’re a business owner, you can elect to have your entity be classified as an S corporation for federal tax purposes using Form 2553. An S corporation is a pass-through entity, which means your business does not pay income tax at a corporate level. Instead, you and your shareholders are […]
Schedule C determines whether your business income is a profit or a loss. Completing a Schedule C will require a lot of documentation, and it comprises several parts. You may learn that if you complete a Schedule C, it may also involve other tax forms. Here is what you should know about Schedule C (Form […]
