There are many important aspects to be aware of when preparing tax returns. The majority of these are the accounting methods that are used to record the income and expenses of businesses. Depending on whether the company is a cash or accrual entity, the accounting method can be either. In addition, many small business owners have to make quarterly estimated tax payments. These tax payments can be done using the Electronic Federal Tax Payment System or by submitting 1040 ES forms with a tax refund.
Intuit offers a variety of service tiers to help small business owners with tax returns. If you prefer a more hands-off approach, they can choose the online TurboTax package or the more involved TurboTax Business software. This option pairs entrepreneurs with a tax professional who can prepare their return from start to end.
TurboTax Business also helps with the preparation of W-2, 1099-MISC and 1040-DIV forms for employees as well as contractors. It will also calculate the estimated tax dues that are usually required by the IRS when you anticipate to owe more than $1,000 in taxes.
However the program can be expensive. With a cost of $200 for the federal filing and $55 for each state, it’s bound to increase to. There are numerous advantages, including live support from an expert and an assurance of 100% accurate calculations. These extra features can be expensive for small business owners. There are alternatives to TurboTax that are more affordable.
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