When preparing tax returns for small-sized businesses There are a few important aspects to take into account. Most of these involve the accounting methods used to record business income and expenses. Depending on the kind of corporation, this may include either the cash or accrual method. In addition, many small business owners have to make quarterly estimated tax payments. These payments can be made online via the Electronic Federal Tax Payment System or by submitting the 1040-ES form with a tax payment.
Intuit provides a variety of services to assist small-business owners with their tax returns. For those who prefer an approach that is more hands-off, they can opt for the online turbotax TurboTax package or the more involved TurboTax Business software. This option combines business owners with a tax professional who will prepare their tax return from beginning to finish.
TurboTax Business also helps with 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 over $1,000 in taxes.
However it can be expensive. The cost can quickly increase with the federal filing costing $200, and each state filing $55. There are numerous advantages, including live support from a professional and a guarantee of 100% accurate calculations. However, these extra features can be difficult for small-sized businesses to afford. There are cheaper alternatives to TurboTax.
