When it comes to tax returns for small businesses There are a few important considerations to take into account. Most of these involve the accounting methods used to record the company’s earnings and expenses. Depending on the kind of company that is incorporated, this could include either the accrual or cash method. Additionally, a large number of small-sized business owners are required to make quarterly estimated tax payments. These payments can be made online through the Electronic Federal Tax Payment System or by submitting a 1040-ES tax form with a tax-paying form.
Intuit offers multiple service tiers to help small business owners with their tax returns. For those who prefer a less hands-on approach can opt for the online TurboTax Self-Employed option or the more complex TurboTax Business application. This option pairs business owners with a specialized tax professional who will prepare their return from start to finish.
TurboTax Business can also help in the preparation of W-2, 1099-MISC, and 1040-DIV for employees and contractors. It also calculates the estimated tax payments required by the IRS in the event that you expect to owe more than $1,000 in taxes.
However it can be costly. The cost can quickly mount up with the federal filing costing $200 and every state $55. There are many benefits such as unlimited live assistance from a professional, and a 100% accurate calculations guarantee. However, these additional features can be difficult for some small businesses to afford. There are cheaper alternatives to TurboTax.
