Intuit’s April Maguire: New Small Business? 5 Things To Know About Federal Income Taxes
This article is worth the quick read. Here are the five topics they covered:
- Your legal entity affects your tax burden
- You can deduct more than you think
- Don’t forget about startup expenses (they may be deductible)
- You must make estimated payments
- You’re responsible for paying self-employment tax
The IRS created a video workshop for small business owners about their taxes. Click here to watch.
The Small Business Administration has a series of tax resources. Click here for more.
- Learn if the activity you are engaging in qualifies as a business or a hobby and what the tax advantages and requirements are for each.
- Each state and locality has its own tax laws for businesses. Find out what the requirements and benefits are for your state.
- Learn where you can obtain your federal tax ID.
- Knowing when the tax year starts for your small business is important to meeting filing requirements. Learn more about your tax year and when you need to file.
- Find out what the federal tax obligations are for your small business.
Bankrate put a list of deductions together to help you get organized.
- Home office
- Office supplies
- Other equipment
- Software and subscriptions
- Travel, meals, entertainment, and gifts
- Insurance premiums
- Retirement contributions
- Social security
- Telephone charges
- Child labor
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Happy tax season!