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…
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Section 179 Deduction for Property, Equipment, & Vehicles
The Section 179 tax deduction allows business owners to deduct the full cost of qualifying property and equipment purchases, up to $1 million for the 2018 tax year. Businesses can also write off the full cost of equipment through bonus depreciation, which makes this is a viable alternative to the Section 179 deduction starting in…
24 Small Business Tax Preparation Mistakes to Avoid from the Pros
Tax season can be very stressful for small business owners, especially for those who don’t understand the tax paying process. One small mistake can cause overpayment, penalties, and not being able to take advantage of tax savings. To help, we asked the experts to share the most common small business tax preparation mistakes you should…
Section 179 Calculator: Calculate Your Tax Savings
Section 179 is a type of tax deduction that lets you deduct up to $1 million in equipment and other fixed assets as a business expense on your tax return. This provides significant tax savings compared to depreciating the assets over several years. Our Section 179 calculator helps you determine how much you can deduct…
2018 Mileage Rate & When to Use Standard Rate vs. Actual Car Expenses
If you use your vehicle for business, you may qualify for a tax deduction. The deduction is calculated based on a standard mileage rate (54.5 cents for 2018) or you can deduct car expenses like gas or repairs. If you use your vehicle for personal and business, keep track of the miles driven. What the…
IRS Form 1120S: Definition, Download, & 1120S Instructions
Form 1120S is the annual tax form used by S-corps and LLCs taxed as S-corps to report their net earnings to the IRS. Similar to partnerships, net earnings pass through to the S-corp’s shareholders. Shareholders report their share of the S-corp’s earnings on their personal tax returns. You can download Form 1120S and prepare the…
Small Business LLC Taxes & LLC Tax Returns [+ Free Checklist]
A limited liability company (LLC) can be taxed as one of four entity types – sole proprietorship, partnership, C-corporation (C-corp), or S-corporation (S-corp). The entity type that’s right for LLC taxes, and the type of LLC tax return that needs to be filed, depends on the number of owners and any elections the owners make….
2019 FICA Taxes, Unemployment Insurance, & Workers’ Comp for Owners
FICA (Federal Insurance Contributions Act) is a federal law that requires employers to withhold three taxes from their employees’ wages: 6.2% Social Security tax, 1.45% Medicare tax, and 0.9% for anyone who earns more than $200,000. In addition to FICA taxes, you must also cover unemployment taxes and workers’ compensation. If you’re looking for affordable…
2018 FUTA Tax Rate & Form 940 Instructions
The Federal Unemployment Tax Act (FUTA) requires employers to pay a tax of 6% on the first $7,000 of salary or wages paid to each employee during the year. This FUTA tax is deposited with the IRS throughout the year. Employers file Form 940 to calculate their FUTA tax for the previous calendar year. How…
Form 941 Instructions & FICA Tax Rate 2019 [+ Mailing Address]
Form 941 is a quarterly tax form that tracks FICA tax payments made by employers throughout the year. FICA taxes include Social Security and Medicare taxes with employer rates of 6.2% and 1.45%, respectively. FICA taxes are typically due monthly or semiweekly, and Form 941 is due quarterly. You can download Form 941 here. However,…
Sole Proprietorship Taxes: Rates, Deadlines, Benefits & Forms
The IRS treats the owner of a sole proprietorship and the business as a single entity. Instead of paying a 21% corporate tax rate, your sole proprietorship tax rate is based on your personal income tax bracket. Sole props file an annual tax return on April 15 but may be subject to other tax filings….
Top 27 Business Tax Saving Tips from the Pros
Taxes are an important aspect of running a business. You need to be aware which taxes to pay and when they are due. It can be overwhelming, but planning ahead can help you file on time and claim the right deductions. Here experts share the most effective business tax saving tips you can try. Below…
