#1065 Form Tax Instructions

[paystubusa]

Everything You Need to Know About Using an Online 1065 Form Generator

IRS Online 1065 Form Generator is used by partnerships to report all the income, deductions, gains, and losses of every individual. These are not like the corporations; it is all about profits, and losses flow through to the partners.

[reitmonero]

Navigating Tax Laws: A Small Business Owner’s Survival Guide

1. Understand the Basics

a. Know Your Business Structure

Sole Proprietorship: Simplest form, but with unlimited personal liability.

Partnership: Shared responsibility and liability; taxes are passed through to partners.

LLC (Limited Liability Company): Offers liability protection with flexible tax options.

Corporation: Separate legal entity; taxed separately from owners, with more complex requirements.

b. Know Your Tax Obligations

Federal Income Taxes: Based on business structure and net income.

State Income Taxes: Varies by state; check local requirements.

Self-Employment Taxes: For sole proprietors, partners, and LLC members, includes Social Security and Medicare taxes.

Employment Taxes: Includes withholding for employee income taxes, Social Security, and Medicare.

2. Set Up Your Financial System

a. Keep Accurate Records

Income: Track all sources of income.

Expenses: Record all business-related expenses.

Receipts: Keep all receipts for verification.

b. Choose Accounting Software

QuickBooks: Popular for small businesses, with various features for tax tracking.

Xero: Known for its ease of use and mobile-friendly interface.

FreshBooks: Good for invoicing and expense tracking.

c. Hire a Professional

Accountant: Helps with tax planning and filing.

Tax Advisor: Provides guidance on tax strategy and compliance.

3. Learn About Deductions and Credits

a. Common Deductions

Office Supplies: Paper, pens, computers.

Utilities: Electricity, water, internet.

Rent: For office space or commercial property.

Travel: Business-related travel expenses.

Meals: 50% of business meals can be deducted.

b. Credits

Research and Development (R&D) Credit: For businesses investing in R&D.

Small Business Health Care Tax Credit: For businesses providing health insurance to employees.

4. Understand Tax Filing Requirements

a. Choose Your Filing Status

Quarterly Estimated Taxes: If you expect to owe $1,000 or more, you must pay estimated taxes quarterly.

Annual Returns: Based on your business structure, file Form 1040, 1120, 1120S, or 1065.

b. File and Pay on Time

Deadlines: Know the deadlines for quarterly estimated taxes and annual returns.

Extensions: File for an extension if needed, but remember this doesn’t extend the time to pay any taxes owed.

5. Stay Compliant with Tax Laws

a. Stay Updated

IRS Updates: Regularly check IRS updates or subscribe to newsletters.

State Tax Changes: Monitor changes in state tax laws that may affect your business.

b. Maintain Good Records

Retention Period: Keep records for at least 3-7 years, depending on the type of document and potential for audits.

c. Respond to Notices

IRS Notices: Address any correspondence from the IRS promptly to avoid penalties.

6. Plan for the Future

a. Tax Planning

Year-End Planning: Review your tax situation at year-end to make any necessary adjustments.

Retirement Plans: Consider setting up a retirement plan like a SEP IRA or Solo 401(k) to reduce taxable income.

b. Consult a Tax Professional

Regular Reviews: Schedule regular meetings with a tax professional to review your tax strategy and make adjustments as needed.

7. Use Tax Resources

a. IRS Resources

IRS Website: Offers forms, instructions, and guides.

Small Business and Self-Employed Tax Center: Provides resources specific to small businesses.

b. Online Tools

Tax Calculators: Estimate your tax liability with online calculators.

Deduction Finders: Identify potential deductions.

c. Professional Organizations

SCORE: Provides free mentoring and workshops for small business owners.

Small Business Administration (SBA): Offers resources and guides on various aspects of running a small business.

[sakshamyng]

Exploring Drake Tax Software: A Comprehensive Tool for Tax Professionals

In the quick-paced world of tax instruction, performance and accuracy are paramount. Tax specialists need strong software answers to navigate the complexities of tax laws and policies at the same time as making sure their clients get hold of the best possible results. One such tool that has received substantial traction in the enterprise is Drake Tax Software. 

What is Drake Tax Software?

Drake Tax Software is a comprehensive tax training solution designed to cater to the desires of tax professionals, inclusive of CPAs, enrolled marketers, and tax preparers. Founded in 1977, Drake Software has constructed a recognition for turning in reliable, green, and person-pleasant tax software program that simplifies the training and filing of federal and country tax returns.

Key Features of Drake Tax Software

User-Friendly Interface: Drake Tax Software boasts an intuitive interface that makes it easy for tax professionals to navigate through various tax bureaucracy and schedules. The software program is designed to streamline statistics access and reduce errors, ensuring a clean workflow.

Comprehensive Tax Coverage: The software program helps a huge range of tax returns, along with character (1040), commercial enterprise (1120, 1120S, 1065), fiduciary (1041), estate and present (706, 709), and nonprofit (990) returns. This extensive insurance guarantees that tax specialists can cope with diverse purchaser desires.

Electronic Filing (E-Filing): Drake Tax Software allows the digital submission of federal and country tax returns, reducing the time and effort required for paper submission. E-filing also quickens the refund method and provides real-time confirmation of submitting reputation.

Built-In Error Checking: The software program includes a strong blunders-checking machine that identifies capability issues and discrepancies in tax returns earlier than filing. This characteristic allows reduce the threat of audits and penalties by means of ensuring returns are accurate and compliant with tax laws.

Integration and Data Import: Drake Tax Software gives seamless integration with diverse accounting software programs, which includes QuickBooks, taking into account the clean import of economic facts. This integration reduces guide record access and enhances accuracy.

Client Management: The software program includes a purchaser control machine that organizes purchaser records, tracks conversations, and manages files efficiently. This feature guarantees that tax professionals can provide customized service and maintain sturdy client relationships.

State-Specific Forms: Drake Tax Software supports a complete range of state-particular tax forms, making sure compliance with country policies and simplifying the education of country tax returns.

Secure Data Handling: Security is a pinnacle priority for Drake Software. The software program employs advanced encryption and security features to guard sensitive client information, ensuring confidentiality and compliance with data safety regulations.

Benefits of Using Drake Tax Software

Time Efficiency: The software program's intuitive design and automation features considerably reduce the time spent on making ready and filing tax returns. This efficiency allows tax specialists to handle more customers and increase their productiveness.

Accuracy and Compliance: Built-in error checking and updated tax regulation integration make certain that returns are accurate and compliant with modern-day rules. This reduces the likelihood of audits and consequences.

Cost-Effective: Drake Tax Software gives a price-powerful solution for tax professionals, providing a complete suite of capabilities at an aggressive fee. The software's efficiency also interprets to price financial savings in phrases of time and resources.

Enhanced Client Service: With strong consumer management tools and green records coping with, tax professionals can offer higher carrier to their clients. The software's accuracy and reliability build consideration and pleasure among customers.

Continuous Support and Updates: Drake Software presents ordinary updates to make certain the software stays cutting-edge with the brand new tax legal guidelines and rules. Additionally, customers have get right of entry to comprehensive assistance resources, which include customer service and training substances.

In an enterprise where accuracy, performance, and reliability are crucial, Drake Tax Software stands proud as a comprehensive answer for tax specialists. Its consumer-pleasant interface, widespread tax coverage, and strong functions make it a useful device for navigating the complexities of tax education. By leveraging Drake Tax Software, tax experts can enhance their productivity, make certain compliance, and deliver incredible service to their clients. Whether you're a pro tax preparer or a developing exercise, Drake Tax Software is worth considering for your tax coaching needs.

For tax specialists utilising Drake Tax Software, integrating with Verito can decorate the overall experience via offering secure, dependable cloud web hosting solutions. Verito ensures that Drake Tax Software is out there from everywhere with an internet connection, supplying actual-time collaboration, automated backups, and sturdy security measures. This seamless integration allows tax experts to be aware of their core obligations at the same time as taking part in the ability and peace of thoughts that includes cloud-based solutions.

[irs-tax-id-blog]

How To Obtain An EIN For Your Partnership

There are so many companies that started off as a simple partnership between two or more people. It’s a risky form of building a business, but it’s great for retaining control of a company and keeping the profits and losses close to the chest when things are still small.

Like every business, some kind of tax ID is needed so you can pay your business taxes. But if you’re a partnership, a simple Social Security number isn’t enough. One person can’t assume all the risk! That’s why you need to apply for an EIN.

An EIN is an employer identification number. Sometimes new partnerships think they don’t need one because they’re not hiring anyone. Two is enough. But you still need one for tax purposes so that when you fill out your Form 1065 (a partnership tax return), you can split the assets and liabilities appropriately.

Here’s what you need to do:

Get An SS-4

A Form SS-4 is the form used for IRS EIN applications. This form is easily found online, but there are also services that can walk you through this short yet important form and file it on your behalf. The IRS uses the information in this form to classify your business, so an error on the form can lead to big tax headaches later on if you’re not careful.

Gather Information

Next, get the following information:

The name of the business

The location of the business

Decide who in the partnership will be the one applying for the EIN

Any previous EIN the responsible partner had

The date that you plan to start the business

An estimate of the number of employees you plan to hire if any.

Fill Out The Form

If this is a new business and if you don’t plan on hiring any employees for your new partnership, fill out lines 1,2, 4a-8a, 9a, 9b, 10-14, and 16-18. If you do plan on hiring new employees or already have employees, you’ll need to add line 15. Most of these questions are pretty straightforward and the form comes with instructions. Be sure to select partnership under question 9a to let the IRS know that is the type of structure you want!

Send The Form

If you are using a physical form, you can mail or fax it in using the information in the instructions that come with the form. Many people use an online service to do it because the turnaround time is much faster. Most businesses can get a new EIN in two business days. Once the IRS has sent you an email with your EIN, you can use it immediately. A formal letter with your EIN will arrive a couple of weeks later.

There is no fee to do this yourself through the mail, but if you do it through a third-party designee there may be a fee involved to have them fill out the form properly and deal with the IRS.

What If I’m Rejected?

If you get rejected for an EIN, the IRS will send information about why you were rejected. One common reason this happens is that the business name you selected conflicts with someone else’s business. This is done on a state level, so if this happens you’ll have to change the name or register in another state.

If you already have an EIN in your name connected to your Social Security number, this can also be a reason for denial, especially if you apply online. You also cannot use an EIN obtained electronically to secure other EINs.

In nearly all cases, a bounced EIN application is due to a name conflict. You’re free to try again, but you may want to do research first to check for name conflicts to avoid wasted time.

Once you have your EIN, your partnership can open for business!

[paystubusa]

How to File 1040 SE Form Online Easily

Filing your 1040 SE Form Online has never been easier with PaystubUSA. Our step-by-step guide simplifies the process for self-employed individuals, ensuring accuracy and compliance. Avoid tax filing errors and complete your self-employment tax form quickly with our user-friendly platform.

[paystubusa]

Choosing the Right Online 1065 Form Generator for Your Business

Choosing the right Online 1065 Form Generator is critical for streamlining your tax submitting procedure. By thinking about factors consisting of ease of use, safety, and integration, you could pick out a tool that first-rate suits your commercial enterprise desires.

[advancetaxreliefexperts]

WHAT IS FORM 1065?

As a business, you have the option of one of many different business structures. The default for unincorporated businesses with more than one owner is a partnership.

Partnerships are pass-through entities, meaning they report their adjusted gross income, tax deductions and credits to partners to report on their personal tax returns. But the partnership still files its own return for information purposes, Form 1065. NEED HELP WITH BACK TAX DEBT, UNFILED TAX RETURNS OR SMALL BUSINESS TAX PREPARATION?

ADVANCE TAX RELIEF LLC www.advancetaxrelief.com BBB A+ RATED CALL (713)300-3965

What is Form 1065? Form 1065, U.S. Return of Partnership Income is used to help report a gain or loss in partnership business on each partners’ Schedule K-1.

How is IRS Form 1065 is Used? IRS Form 1065 is five pages long. Here’s a summary of each page.

Page One: Page one of the IRS Form 1065 should include:

Basic information – your partnership’s name, address, employer identification number, business activity, date that the business started Whether the return is special (i.e. initial return, final return, amended return, etc.) Method of accounting The number of Schedules K-1 attached

Income: Page one of the 1065 form also includes a section where you list all income, deductions, tax liability, and payments coming from your partnership’s trade or business, such as:

Net gains Gross receipts Income generated from business assets The bottom of page one of the 1065 tax form has an area where any partner can enter their signature.

Pages Two and Three: Pages two and three lists Schedule B, Other Information. You’ll answer a list of yes or no questions regarding specific situations. These two pages are also used to provide information about someone designated by the partnership to sign the return and interface with the IRS on matters concerning the return and whether the partnership is opting out of the new centralized audit rules.

Page Four: Page four of the Form 1065 lists Schedule K, the partners’ distributive share of items. It has sections for:

Income and losses Tax deductions Self-employment Tax credits Foreign transactions Alternative minimum tax items Page Five: Page five of the Form 1065 has an analysis of net income or loss that breaks down the business’ income or loss.

It also divides the income or loss among general partners and limited partners and by the type of partner.

There are two schedules listed on page five, the Schedule L and Schedule M-1.

Schedule L is a balance sheet for assets and liabilities of the partnership. Schedule M-1 shows reconciliation of income or loss with information reported on the partnership’s books. This will show you the difference between book and tax accounting since the two are often different. Schedule M-2 is an analysis of the partners’ capital accounts. The partnership also might be required to file Schedule M-3, if certain requirements are met. See the Instructions for Form 1065 for more information. GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2018/2019 tax return or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX with a branch office in Los Angeles, CA. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

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[bala-hota]

Easy Guide to a Painless Tax Season

Do the words “tax season” make you shudder? You’re not alone. Over half of US adults say tax season stresses them out. And when you run your own business, your tax time heebie jeebies are bound to be even more severe. 

Tax season is faster and easier when your bookkeeping is organized. And our partners at Bench will handle all your small business bookkeeping, and even file your taxes for you.

But if you’re filing your own taxes, read on. We’ll cover all the forms you need to file and deadlines you need to meet—plus how to file on time or get an extension. 

The Documents You Need to File Taxes

When you file your tax return, you must be able to prove what you earned and what you spent —for the sake of reporting income, as well as claiming tax deductions. These records don’t get sent in with your return, but you’ll use them to calculate your total income and expenses for the year. And you need to have them on hand in the unlikely event you’re audited. 

Basic Info for Filing Small Business Taxes

Personal and business info: Your address, the address of your business, your full name, and your Social Security Number (SSN).

Last year’s filing: Having your previous return on hand makes it easier to complete this year’s return and keep track of info like depreciable expenses.

A tax ID number: There are a variety of different numbers you may use as a tax ID number—from your SSN to your employer identification number (EIN). Not sure which to use for your business? This article on tax ID numbers offers a handy rundown. 

Records of Small Business Revenue

Invoices you sent to clients: Keeping copies of sent and paid invoices helps you track your revenue, and can support your case if your revenue or income are ever called into question by the IRS.

Records of goods sold: Cash receipts, or transaction lists from an online store or point of sale, can serve as a record of revenue you’ve earned.

Other sales records tracking revenue: It’s smart to hold on to any records of revenue you’ve got. In lieu of organized bookkeeping and regular income statements, you can use them to calculate your revenue for the year.

Records of Expenses

By subtracting your expenses from your revenue, you get your total income for the year. That’s essential for filing. Also, many expenses are deductible—and if you make deduction claims, you’ll need to back them up.

Be sure to hold on to: 

Rent receipts

Office supplies receipts

Employee salaries

Mileage records

Other deductible expense receipts 

Annual Financial Statements

An income statement, balance sheet, and (if you use accrual accounting) cash flow statement for the year will make filing easy. Comprehensive financial statements give you all the info you need to file. If you don’t have financial statements for your business, now may be the time to hire a bookkeeper.

Essential Tax Forms and Deadlines

Once you’ve got your documents in order, get the forms you’ll need to file. The exact forms you’ll use, and the deadlines for filing, depend on your business structure.

Tax Forms and Deadlines for Sole Props

Filing Deadline: April 15, 2019 (the same as your personal taxes)

There’s no need to file a separate return for your business. Report your business income and expenses on Schedule C of your personal tax return. To claim itemized deductions, list them on Schedule A.

The IRS instructions will walk you through the process of tallying your expenses and revenue for the year, and determining your income. 

Tax Forms and Deadlines for LLCs

Filing Deadline: April 15, 2019 (single member)

Filing Deadline: March 15, 2019 (multi member)

If you’re a single member LLC, you’ll file your taxes the same way you would as a sole prop. 

If you’re a multi-member LLC, you elect to file taxes as either a partnership or an S corporation.

Tax Forms and Deadlines for Partnerships

The partnership files Form 1065, and each individual files a Schedule K-1 to report what they’ve made and lost during the year. Partners claim unreimbursed business expenses on Schedule E.

Partnership filings, and Form 1065, can get pretty complex. For this reason, we recommend working with a tax professional to file your taxes.

Tax Forms and Deadlines for C Corporations

Filing Deadline: March 15, 2019

In addition to your personal tax return, you’ll file one for your corporation using Form 1120. This form is similar to Schedule C of your personal tax return, but more complex—and separate from your personal finances. Most business owners hire an accountant to help with Form 1120. 

Tax forms and deadlines for S Corporations

Filing Deadline: March 15, 2019

You’ll file a Form 1120S for your corporation, and each shareholder will need to report their profits and losses with Schedule K-1. Similarly to a C corporation return, most S corps get help from an accountant to file taxes

Tax Forms and Deadlines for Businesses that Hire Contractors

Filing Deadline: Sent to recipients by January 31, 2019

If you’re paid $600 or more to a contractor, you need to file Form 1099. Once copy of this form goes to the IRS, for the sake of filing your own taxes; another copy goes to the contractor, so they can use it to file their taxes. You need to file a separate Form 1099 for each contractor.

How to File Taxes Online

Gone are the days of paper filings. The most efficient (and popular) way to file taxes with the IRS is online. 

To file your taxes online, you have two options: Free File, or Free File Fillable Forms.

IRS Free File

The IRS has partnered with 13 providers who offer free versions of their accounting software that you can use to file your taxes online. You’re automatically enrolled in Free File once you sign up with one of these providers—you don’t sign up through the IRS website.

Most providers offer a basic software package for free. These typically aren’t able to cover all the needs of a business—such as filing itemized deductions. You’ll need a paid version for that; the packages recommended for sole props range from $54.95 (1040.com) to $94.99 (H&R Block).

IRS Free File Fillable Forms

Essentially, Free File Fillable Forms lets you complete IRS forms online, through the IRS website. These forms will do basic calculations for you, but they don’t check for errors.

Fillable Forms will automatically calculate your tax refund, and you can elect to have it transferred directly to your bank account. You can also pay your taxes online.

If your business is small and relatively simple—like a sole prop—and you’re already experienced with filing taxes for your business, Fillable Forms may be a good choice. 

Otherwise, the process could take a while, and you’ll run the risk of making errors. In that case, you may be better off having someone file your taxes for you.

BenchTax

If you’re short on time and energy this tax season, and don’t want to wade into the depths of filing by yourself, consider BenchTax. With BenchTax, a team of professional bookkeepers will get your books caught up to the current month; then, they’ll work with tax experts to get your taxes filed accurately and on time—taking advantage of as many itemized deductions as possible.

How to Get an Extension

If it looks like you’ll be late filing taxes, file for an extension ASAP. It will save you from IRS late filing penalties, and getting an extension is pretty straightforward.

Filing a tax extension for your sole proprietorship or single-member LLC

If you plan to pay your taxes online, you can get a six month extension through the IRS payment portal.

Otherwise, you can request an extension by filing IRS Form 4868.

Filing a tax extension for your multi-member LLC, partnership, or corporation

You can file for a six month extension using IRS Form 7004. 

File Early, Rest Easy

If you can, file your taxes early—meaning, well before the deadline. This may take some prep, but it has advantages.

First, you’ll get your tax refund earlier. Remember, a tax refund is your money—you just happened to overpay it to the IRS, and they’re holding on to it. Your money isn’t collecting interest while the IRS holds it. The sooner you get it back, the sooner you can put it to work for your business.

Second, you’ll have the info you need to start planning your estimated taxes for the coming year—ticking one more item off your tax to-do list.

To file early, you’ll need tip top books. The more organized your books, the easier it is to get the numbers you need to file your return. The best way to stay organized is to do your bookkeeping throughout the year, rather than handling it all in one mad scramble come January.

Ready to get your books in order? Check out Bench. They’ll do one month of bookkeeping for you, free.

—

Tax time doesn’t have to be stressful. And it won’t be, so long as you have everything you need to approach it in an organized way. Your filing date, and the forms you need, vary according to your business structure—so make sure you know what’s what before the deadline comes.

from The Grasshopper Blog - Insights for Entrepreneurs https://grasshopper.com/blog/Easy Guide to a Painless Tax Season/ via IFTTT

[danidhenga]

Easy Guide to a Painless Tax Season

Do the words “tax season” make you shudder? You’re not alone. Over half of US adults say tax season stresses them out. And when you run your own business, your tax time heebie jeebies are bound to be even more severe. 

Tax season is faster and easier when your bookkeeping is organized. And our partners at Bench will handle all your small business bookkeeping, and even file your taxes for you.

But if you’re filing your own taxes, read on. We’ll cover all the forms you need to file and deadlines you need to meet—plus how to file on time or get an extension. 

The Documents You Need to File Taxes

When you file your tax return, you must be able to prove what you earned and what you spent —for the sake of reporting income, as well as claiming tax deductions. These records don’t get sent in with your return, but you’ll use them to calculate your total income and expenses for the year. And you need to have them on hand in the unlikely event you’re audited. 

Basic Info for Filing Small Business Taxes

Personal and business info: Your address, the address of your business, your full name, and your Social Security Number (SSN).

Last year’s filing: Having your previous return on hand makes it easier to complete this year’s return and keep track of info like depreciable expenses.

A tax ID number: There are a variety of different numbers you may use as a tax ID number—from your SSN to your employer identification number (EIN). Not sure which to use for your business? This article on tax ID numbers offers a handy rundown. 

Records of Small Business Revenue

Invoices you sent to clients: Keeping copies of sent and paid invoices helps you track your revenue, and can support your case if your revenue or income are ever called into question by the IRS.

Records of goods sold: Cash receipts, or transaction lists from an online store or point of sale, can serve as a record of revenue you’ve earned.

Other sales records tracking revenue: It’s smart to hold on to any records of revenue you’ve got. In lieu of organized bookkeeping and regular income statements, you can use them to calculate your revenue for the year.

Records of Expenses

By subtracting your expenses from your revenue, you get your total income for the year. That’s essential for filing. Also, many expenses are deductible—and if you make deduction claims, you’ll need to back them up.

Be sure to hold on to: 

Rent receipts

Office supplies receipts

Employee salaries

Mileage records

Other deductible expense receipts 

Annual Financial Statements

An income statement, balance sheet, and (if you use accrual accounting) cash flow statement for the year will make filing easy. Comprehensive financial statements give you all the info you need to file. If you don’t have financial statements for your business, now may be the time to hire a bookkeeper.

Essential Tax Forms and Deadlines

Once you’ve got your documents in order, get the forms you’ll need to file. The exact forms you’ll use, and the deadlines for filing, depend on your business structure.

Tax Forms and Deadlines for Sole Props

Filing Deadline: April 15, 2019 (the same as your personal taxes)

There’s no need to file a separate return for your business. Report your business income and expenses on Schedule C of your personal tax return. To claim itemized deductions, list them on Schedule A.

The IRS instructions will walk you through the process of tallying your expenses and revenue for the year, and determining your income. 

Tax Forms and Deadlines for LLCs

Filing Deadline: April 15, 2019 (single member)

Filing Deadline: March 15, 2019 (multi member)

If you’re a single member LLC, you’ll file your taxes the same way you would as a sole prop. 

If you’re a multi-member LLC, you elect to file taxes as either a partnership or an S corporation.

Tax Forms and Deadlines for Partnerships

The partnership files Form 1065, and each individual files a Schedule K-1 to report what they’ve made and lost during the year. Partners claim unreimbursed business expenses on Schedule E.

Partnership filings, and Form 1065, can get pretty complex. For this reason, we recommend working with a tax professional to file your taxes.

Tax Forms and Deadlines for C Corporations

Filing Deadline: March 15, 2019

In addition to your personal tax return, you’ll file one for your corporation using Form 1120. This form is similar to Schedule C of your personal tax return, but more complex—and separate from your personal finances. Most business owners hire an accountant to help with Form 1120. 

Tax forms and deadlines for S Corporations

Filing Deadline: March 15, 2019

You’ll file a Form 1120S for your corporation, and each shareholder will need to report their profits and losses with Schedule K-1. Similarly to a C corporation return, most S corps get help from an accountant to file taxes

Tax Forms and Deadlines for Businesses that Hire Contractors

Filing Deadline: Sent to recipients by January 31, 2019

If you’re paid $600 or more to a contractor, you need to file Form 1099. Once copy of this form goes to the IRS, for the sake of filing your own taxes; another copy goes to the contractor, so they can use it to file their taxes. You need to file a separate Form 1099 for each contractor.

How to File Taxes Online

Gone are the days of paper filings. The most efficient (and popular) way to file taxes with the IRS is online. 

To file your taxes online, you have two options: Free File, or Free File Fillable Forms.

IRS Free File

The IRS has partnered with 13 providers who offer free versions of their accounting software that you can use to file your taxes online. You’re automatically enrolled in Free File once you sign up with one of these providers—you don’t sign up through the IRS website.

Most providers offer a basic software package for free. These typically aren’t able to cover all the needs of a business—such as filing itemized deductions. You’ll need a paid version for that; the packages recommended for sole props range from $54.95 (1040.com) to $94.99 (H&R Block).

IRS Free File Fillable Forms

Essentially, Free File Fillable Forms lets you complete IRS forms online, through the IRS website. These forms will do basic calculations for you, but they don’t check for errors.

Fillable Forms will automatically calculate your tax refund, and you can elect to have it transferred directly to your bank account. You can also pay your taxes online.

If your business is small and relatively simple—like a sole prop—and you’re already experienced with filing taxes for your business, Fillable Forms may be a good choice. 

Otherwise, the process could take a while, and you’ll run the risk of making errors. In that case, you may be better off having someone file your taxes for you.

BenchTax

If you’re short on time and energy this tax season, and don’t want to wade into the depths of filing by yourself, consider BenchTax. With BenchTax, a team of professional bookkeepers will get your books caught up to the current month; then, they’ll work with tax experts to get your taxes filed accurately and on time—taking advantage of as many itemized deductions as possible.

How to Get an Extension

If it looks like you’ll be late filing taxes, file for an extension ASAP. It will save you from IRS late filing penalties, and getting an extension is pretty straightforward.

Filing a tax extension for your sole proprietorship or single-member LLC

If you plan to pay your taxes online, you can get a six month extension through the IRS payment portal.

Otherwise, you can request an extension by filing IRS Form 4868.

Filing a tax extension for your multi-member LLC, partnership, or corporation

You can file for a six month extension using IRS Form 7004. 

File Early, Rest Easy

If you can, file your taxes early—meaning, well before the deadline. This may take some prep, but it has advantages.

First, you’ll get your tax refund earlier. Remember, a tax refund is your money—you just happened to overpay it to the IRS, and they’re holding on to it. Your money isn’t collecting interest while the IRS holds it. The sooner you get it back, the sooner you can put it to work for your business.

Second, you’ll have the info you need to start planning your estimated taxes for the coming year—ticking one more item off your tax to-do list.

To file early, you’ll need tip top books. The more organized your books, the easier it is to get the numbers you need to file your return. The best way to stay organized is to do your bookkeeping throughout the year, rather than handling it all in one mad scramble come January.

Ready to get your books in order? Check out Bench. They’ll do one month of bookkeeping for you, free.

—

Tax time doesn’t have to be stressful. And it won’t be, so long as you have everything you need to approach it in an organized way. Your filing date, and the forms you need, vary according to your business structure—so make sure you know what’s what before the deadline comes.

from The Grasshopper Blog - Insights for Entrepreneurs https://grasshopper.com/blog/Easy Guide to a Painless Tax Season/ via IFTTT

[thomasscottedwards]

Easy Guide to a Painless Tax Season

Do the words “tax season” make you shudder? You’re not alone. Over half of US adults say tax season stresses them out. And when you run your own business, your tax time heebie jeebies are bound to be even more severe. 

Tax season is faster and easier when your bookkeeping is organized. And our partners at Bench will handle all your small business bookkeeping, and even file your taxes for you.

But if you’re filing your own taxes, read on. We’ll cover all the forms you need to file and deadlines you need to meet—plus how to file on time or get an extension. 

The Documents You Need to File Taxes

When you file your tax return, you must be able to prove what you earned and what you spent —for the sake of reporting income, as well as claiming tax deductions. These records don’t get sent in with your return, but you’ll use them to calculate your total income and expenses for the year. And you need to have them on hand in the unlikely event you’re audited. 

Basic Info for Filing Small Business Taxes

Personal and business info: Your address, the address of your business, your full name, and your Social Security Number (SSN).

Last year’s filing: Having your previous return on hand makes it easier to complete this year’s return and keep track of info like depreciable expenses.

A tax ID number: There are a variety of different numbers you may use as a tax ID number—from your SSN to your employer identification number (EIN). Not sure which to use for your business? This article on tax ID numbers offers a handy rundown. 

Records of Small Business Revenue

Invoices you sent to clients: Keeping copies of sent and paid invoices helps you track your revenue, and can support your case if your revenue or income are ever called into question by the IRS.

Records of goods sold: Cash receipts, or transaction lists from an online store or point of sale, can serve as a record of revenue you’ve earned.

Other sales records tracking revenue: It’s smart to hold on to any records of revenue you’ve got. In lieu of organized bookkeeping and regular income statements, you can use them to calculate your revenue for the year.

Records of Expenses

By subtracting your expenses from your revenue, you get your total income for the year. That’s essential for filing. Also, many expenses are deductible—and if you make deduction claims, you’ll need to back them up.

Be sure to hold on to: 

Rent receipts

Office supplies receipts

Employee salaries

Mileage records

Other deductible expense receipts 

Annual Financial Statements

An income statement, balance sheet, and (if you use accrual accounting) cash flow statement for the year will make filing easy. Comprehensive financial statements give you all the info you need to file. If you don’t have financial statements for your business, now may be the time to hire a bookkeeper.

Essential Tax Forms and Deadlines

Once you’ve got your documents in order, get the forms you’ll need to file. The exact forms you’ll use, and the deadlines for filing, depend on your business structure.

Tax Forms and Deadlines for Sole Props

Filing Deadline: April 15, 2019 (the same as your personal taxes)

There’s no need to file a separate return for your business. Report your business income and expenses on Schedule C of your personal tax return. To claim itemized deductions, list them on Schedule A.

The IRS instructions will walk you through the process of tallying your expenses and revenue for the year, and determining your income. 

Tax Forms and Deadlines for LLCs

Filing Deadline: April 15, 2019 (single member)

Filing Deadline: March 15, 2019 (multi member)

If you’re a single member LLC, you’ll file your taxes the same way you would as a sole prop. 

If you’re a multi-member LLC, you elect to file taxes as either a partnership or an S corporation.

Tax Forms and Deadlines for Partnerships

The partnership files Form 1065, and each individual files a Schedule K-1 to report what they’ve made and lost during the year. Partners claim unreimbursed business expenses on Schedule E.

Partnership filings, and Form 1065, can get pretty complex. For this reason, we recommend working with a tax professional to file your taxes.

Tax Forms and Deadlines for C Corporations

Filing Deadline: March 15, 2019

In addition to your personal tax return, you’ll file one for your corporation using Form 1120. This form is similar to Schedule C of your personal tax return, but more complex—and separate from your personal finances. Most business owners hire an accountant to help with Form 1120. 

Tax forms and deadlines for S Corporations

Filing Deadline: March 15, 2019

You’ll file a Form 1120S for your corporation, and each shareholder will need to report their profits and losses with Schedule K-1. Similarly to a C corporation return, most S corps get help from an accountant to file taxes

Tax Forms and Deadlines for Businesses that Hire Contractors

Filing Deadline: Sent to recipients by January 31, 2019

If you’re paid $600 or more to a contractor, you need to file Form 1099. Once copy of this form goes to the IRS, for the sake of filing your own taxes; another copy goes to the contractor, so they can use it to file their taxes. You need to file a separate Form 1099 for each contractor.

How to File Taxes Online

Gone are the days of paper filings. The most efficient (and popular) way to file taxes with the IRS is online. 

To file your taxes online, you have two options: Free File, or Free File Fillable Forms.

IRS Free File

The IRS has partnered with 13 providers who offer free versions of their accounting software that you can use to file your taxes online. You’re automatically enrolled in Free File once you sign up with one of these providers—you don’t sign up through the IRS website.

Most providers offer a basic software package for free. These typically aren’t able to cover all the needs of a business—such as filing itemized deductions. You’ll need a paid version for that; the packages recommended for sole props range from $54.95 (1040.com) to $94.99 (H&R Block).

IRS Free File Fillable Forms

Essentially, Free File Fillable Forms lets you complete IRS forms online, through the IRS website. These forms will do basic calculations for you, but they don’t check for errors.

Fillable Forms will automatically calculate your tax refund, and you can elect to have it transferred directly to your bank account. You can also pay your taxes online.

If your business is small and relatively simple—like a sole prop—and you’re already experienced with filing taxes for your business, Fillable Forms may be a good choice. 

Otherwise, the process could take a while, and you’ll run the risk of making errors. In that case, you may be better off having someone file your taxes for you.

BenchTax

If you’re short on time and energy this tax season, and don’t want to wade into the depths of filing by yourself, consider BenchTax. With BenchTax, a team of professional bookkeepers will get your books caught up to the current month; then, they’ll work with tax experts to get your taxes filed accurately and on time—taking advantage of as many itemized deductions as possible.

How to Get an Extension

If it looks like you’ll be late filing taxes, file for an extension ASAP. It will save you from IRS late filing penalties, and getting an extension is pretty straightforward.

Filing a tax extension for your sole proprietorship or single-member LLC

If you plan to pay your taxes online, you can get a six month extension through the IRS payment portal.

Otherwise, you can request an extension by filing IRS Form 4868.

Filing a tax extension for your multi-member LLC, partnership, or corporation

You can file for a six month extension using IRS Form 7004. 

File Early, Rest Easy

If you can, file your taxes early—meaning, well before the deadline. This may take some prep, but it has advantages.

First, you’ll get your tax refund earlier. Remember, a tax refund is your money—you just happened to overpay it to the IRS, and they’re holding on to it. Your money isn’t collecting interest while the IRS holds it. The sooner you get it back, the sooner you can put it to work for your business.

Second, you’ll have the info you need to start planning your estimated taxes for the coming year—ticking one more item off your tax to-do list.

To file early, you’ll need tip top books. The more organized your books, the easier it is to get the numbers you need to file your return. The best way to stay organized is to do your bookkeeping throughout the year, rather than handling it all in one mad scramble come January.

Ready to get your books in order? Check out Bench. They’ll do one month of bookkeeping for you, free.

—

Tax time doesn’t have to be stressful. And it won’t be, so long as you have everything you need to approach it in an organized way. Your filing date, and the forms you need, vary according to your business structure—so make sure you know what’s what before the deadline comes.

from The Grasshopper Blog - Insights for Entrepreneurs https://grasshopper.com/blog/Easy Guide to a Painless Tax Season/ via IFTTT

[aydenadler]

Easy Guide to a Painless Tax Season

Do the words “tax season” make you shudder? You’re not alone. Over half of US adults say tax season stresses them out. And when you run your own business, your tax time heebie jeebies are bound to be even more severe. 

Tax season is faster and easier when your bookkeeping is organized. And our partners at Bench will handle all your small business bookkeeping, and even file your taxes for you.

But if you’re filing your own taxes, read on. We’ll cover all the forms you need to file and deadlines you need to meet—plus how to file on time or get an extension. 

The Documents You Need to File Taxes

When you file your tax return, you must be able to prove what you earned and what you spent —for the sake of reporting income, as well as claiming tax deductions. These records don’t get sent in with your return, but you’ll use them to calculate your total income and expenses for the year. And you need to have them on hand in the unlikely event you’re audited. 

Basic Info for Filing Small Business Taxes

Personal and business info: Your address, the address of your business, your full name, and your Social Security Number (SSN).

Last year’s filing: Having your previous return on hand makes it easier to complete this year’s return and keep track of info like depreciable expenses.

A tax ID number: There are a variety of different numbers you may use as a tax ID number—from your SSN to your employer identification number (EIN). Not sure which to use for your business? This article on tax ID numbers offers a handy rundown. 

Records of Small Business Revenue

Invoices you sent to clients: Keeping copies of sent and paid invoices helps you track your revenue, and can support your case if your revenue or income are ever called into question by the IRS.

Records of goods sold: Cash receipts, or transaction lists from an online store or point of sale, can serve as a record of revenue you’ve earned.

Other sales records tracking revenue: It’s smart to hold on to any records of revenue you’ve got. In lieu of organized bookkeeping and regular income statements, you can use them to calculate your revenue for the year.

Records of Expenses

By subtracting your expenses from your revenue, you get your total income for the year. That’s essential for filing. Also, many expenses are deductible—and if you make deduction claims, you’ll need to back them up.

Be sure to hold on to: 

Rent receipts

Office supplies receipts

Employee salaries

Mileage records

Other deductible expense receipts 

Annual Financial Statements

An income statement, balance sheet, and (if you use accrual accounting) cash flow statement for the year will make filing easy. Comprehensive financial statements give you all the info you need to file. If you don’t have financial statements for your business, now may be the time to hire a bookkeeper.

Essential Tax Forms and Deadlines

Once you’ve got your documents in order, get the forms you’ll need to file. The exact forms you’ll use, and the deadlines for filing, depend on your business structure.

Tax Forms and Deadlines for Sole Props

Filing Deadline: April 15, 2019 (the same as your personal taxes)

There’s no need to file a separate return for your business. Report your business income and expenses on Schedule C of your personal tax return. To claim itemized deductions, list them on Schedule A.

The IRS instructions will walk you through the process of tallying your expenses and revenue for the year, and determining your income. 

Tax Forms and Deadlines for LLCs

Filing Deadline: April 15, 2019 (single member)

Filing Deadline: March 15, 2019 (multi member)

If you’re a single member LLC, you’ll file your taxes the same way you would as a sole prop. 

If you’re a multi-member LLC, you elect to file taxes as either a partnership or an S corporation.

Tax Forms and Deadlines for Partnerships

The partnership files Form 1065, and each individual files a Schedule K-1 to report what they’ve made and lost during the year. Partners claim unreimbursed business expenses on Schedule E.

Partnership filings, and Form 1065, can get pretty complex. For this reason, we recommend working with a tax professional to file your taxes.

Tax Forms and Deadlines for C Corporations

Filing Deadline: March 15, 2019

In addition to your personal tax return, you’ll file one for your corporation using Form 1120. This form is similar to Schedule C of your personal tax return, but more complex—and separate from your personal finances. Most business owners hire an accountant to help with Form 1120. 

Tax forms and deadlines for S Corporations

Filing Deadline: March 15, 2019

You’ll file a Form 1120S for your corporation, and each shareholder will need to report their profits and losses with Schedule K-1. Similarly to a C corporation return, most S corps get help from an accountant to file taxes

Tax Forms and Deadlines for Businesses that Hire Contractors

Filing Deadline: Sent to recipients by January 31, 2019

If you’re paid $600 or more to a contractor, you need to file Form 1099. Once copy of this form goes to the IRS, for the sake of filing your own taxes; another copy goes to the contractor, so they can use it to file their taxes. You need to file a separate Form 1099 for each contractor.

How to File Taxes Online

Gone are the days of paper filings. The most efficient (and popular) way to file taxes with the IRS is online. 

To file your taxes online, you have two options: Free File, or Free File Fillable Forms.

IRS Free File

The IRS has partnered with 13 providers who offer free versions of their accounting software that you can use to file your taxes online. You’re automatically enrolled in Free File once you sign up with one of these providers—you don’t sign up through the IRS website.

Most providers offer a basic software package for free. These typically aren’t able to cover all the needs of a business—such as filing itemized deductions. You’ll need a paid version for that; the packages recommended for sole props range from $54.95 (1040.com) to $94.99 (H&R Block).

IRS Free File Fillable Forms

Essentially, Free File Fillable Forms lets you complete IRS forms online, through the IRS website. These forms will do basic calculations for you, but they don’t check for errors.

Fillable Forms will automatically calculate your tax refund, and you can elect to have it transferred directly to your bank account. You can also pay your taxes online.

If your business is small and relatively simple—like a sole prop—and you’re already experienced with filing taxes for your business, Fillable Forms may be a good choice. 

Otherwise, the process could take a while, and you’ll run the risk of making errors. In that case, you may be better off having someone file your taxes for you.

BenchTax

If you’re short on time and energy this tax season, and don’t want to wade into the depths of filing by yourself, consider BenchTax. With BenchTax, a team of professional bookkeepers will get your books caught up to the current month; then, they’ll work with tax experts to get your taxes filed accurately and on time—taking advantage of as many itemized deductions as possible.

How to Get an Extension

If it looks like you’ll be late filing taxes, file for an extension ASAP. It will save you from IRS late filing penalties, and getting an extension is pretty straightforward.

Filing a tax extension for your sole proprietorship or single-member LLC

If you plan to pay your taxes online, you can get a six month extension through the IRS payment portal.

Otherwise, you can request an extension by filing IRS Form 4868.

Filing a tax extension for your multi-member LLC, partnership, or corporation

You can file for a six month extension using IRS Form 7004. 

File Early, Rest Easy

If you can, file your taxes early—meaning, well before the deadline. This may take some prep, but it has advantages.

First, you’ll get your tax refund earlier. Remember, a tax refund is your money—you just happened to overpay it to the IRS, and they’re holding on to it. Your money isn’t collecting interest while the IRS holds it. The sooner you get it back, the sooner you can put it to work for your business.

Second, you’ll have the info you need to start planning your estimated taxes for the coming year—ticking one more item off your tax to-do list.

To file early, you’ll need tip top books. The more organized your books, the easier it is to get the numbers you need to file your return. The best way to stay organized is to do your bookkeeping throughout the year, rather than handling it all in one mad scramble come January.

Ready to get your books in order? Check out Bench. They’ll do one month of bookkeeping for you, free.

—

Tax time doesn’t have to be stressful. And it won’t be, so long as you have everything you need to approach it in an organized way. Your filing date, and the forms you need, vary according to your business structure—so make sure you know what’s what before the deadline comes.

from The Grasshopper Blog - Insights for Entrepreneurs https://grasshopper.com/blog/Easy Guide to a Painless Tax Season/ via IFTTT