Running a business can be expensive, especially when taxes decrease your bottom line. Luckily, there are numerous tax write offs that self-employed professionals can claim to save thousands of dollars. Use IRS Form 1040 to deduct home office, insurance, travel, internet, phone, and other qualifying expenses that you incur operating your business. Here is a…
All Taxes Articles
6 Best Tax Software for Tax Preparers 2019
We compared over a dozen tax software programs and narrowed it down to six. Tax software is the core of a tax preparer’s business, and the best tax software for tax preparers includes preparing individual and business returns. Plus, tax preparers can work efficiently with accounting software integrations and collaborate using a secure client portal….
Independent Contractor Taxes: How Much to Pay & When to File
Independent contractor taxes include federal income tax, self-employment tax, state and municipal taxes. Independent contractors who are sole proprietors report taxes on Form 1040 and Schedule C. Taxes are due on April 15 or October 15, if filed on extension. Independent contractors are required to make estimated tax payments or with the tax return. This…
Small Business Tax Rates: How Much Businesses Actually Pay in Taxes
Based on an SBA study, small businesses pay an average tax rate of 19.8%. The actual tax rates that apply to small businesses vary significantly based on business entity, income, deductions, tax credits, and rates in effect for the year. Small C-corporations have the lowest average tax rate at 17.5%. Bench, the sponsor of this…
5 Best Small Business Tax Software Providers for 2019
Small business owners can prepare their own tax returns for a fraction of the cost of tax professionals. We compared a dozen programs to identify the best small business tax software based on pricing, features, and ease of use. The best tax software for small business allows importing of QuickBooks data and automatic error checking….
S-Corp Taxes: The Ultimate Guide [+Free Checklist]
S corporations (S-corps) are pass-through entities where the income, deductions, and credits of the corporation pass through to its owners. S-corp tax rates are the same as the personal income tax rates. That’s because the owners pay taxes on their share of the S-corp’s income. Some states impose S-corp taxes. S Corp taxation can get…
TaxAct vs TurboTax: Price, Features, & What’s Best in 2019
TaxAct and TurboTax are tax preparation software products that are good options for people to prepare their own tax returns. TurboTax has more features and provides the option for review by a licensed tax professional. TaxAct is less expensive and provides a good set of features for most people who prepare returns. When to Use…
How to Get a PTIN in 4 Steps [+Free Checklist]
Tax professionals must have a Preparer Tax Identification Number, or PTIN, if they are paid to prepare tax returns. Because PTINs expire every December 31st, tax preparers need to renew their PTIN before tax season starts. Preparers can get or renew a PTIN online in about 15 minutes or by mail in about six weeks….
Excise Taxes: A Guide for Small Businesses
The federal government imposes excise taxes on a variety of products and services that are manufactured in or imported into the United States. Business collect excise taxes and pay these excise taxes over the the government. Excise taxes apply to alcoholic beverages, tobacco, firearms, airfares, telephone service, and many other products and services. Alcohol and…
IRS Form 1099 Reporting for Small Business Owners
Businesses are required to send copies of Form 1099-MISC to the IRS and contractors if the business paid $10 or more in royalties or $600 or more in compensation to non-employees. Form 1099-MISC is due by January 31st to report payments made the previous calendar year. Accounting software can prepare and file Form 1099-MISC. You…
How to Prepare Form 1065 in 8 Steps [+ Free Checklist]
Form 1065 is used by partnerships and multi-member LLCs taxed as partnerships to report business income and expenses. Because a partnership is not a taxable entity, net earnings are reported on each partner’s personal tax return. Form 1065 is necessary to report all partnership income, deductions, and credits for the tax year. Here are the…
IRS Annual Filing Season Program 2019
The Annual Filing Season Program (AFSP) is a voluntary credential for tax professionals offered by the IRS. The AFSP is right for tax preparers who are not already enrolled agents, certified public accountants, or attorneys. IRS issues a Record of Completion to tax preparers completing 18 hours of tax education and meeting other requirements. What…
