Independent contractor taxes include federal income tax, self-employment tax, state taxes, and municipal taxes. Independent contractors who are sole proprietors report taxes on Form 1040, Schedule C. Tax returns are due on April 15 or October 15, if an extension is filed. Independent contractors are required to make estimated tax payments on a quarterly basis…
Taxes
Section 179 Deduction for Property, Equipment & Vehicles 2022
The Section 179 deduction allows business owners to immediately deduct up to $1,050,000 of the cost of qualifying new or used property, equipment, and vehicle purchases for the 2021 tax year. The advantage of the deduction is that you immediately receive the tax savings from an equipment purchase rather than gradually saving taxes through depreciation…
How to Complete Form 1120S & Schedule K-1 (With Sample)
Form 1120S is the annual tax form used by S corporations (S-corps) and limited liability companies (LLCs) taxed as S-corps to report their deductions, gains, losses, and income from the business during the current tax year. You can download Form 1120S and prepare the return manually, or prepare it and file it electronically with ,…
Form 1065 Step-by-Step Instructions (+ Free Checklist)
Form 1065 is the tax return used by partnerships to report business income and expenses. Multimember limited liability companies (LLCs) not being taxed as S corporations (S-corps) also must file Form 1065. While Form 1065 doesn’t generate a tax liability, it’s very important to complete it on time and accurately. The penalty for a late…
How To Fill Out Your 2021 Schedule C (With Example)
Schedule C, also known as “Form 1040, Profit and Loss,” is a year-end tax form used to report income or loss from a sole proprietorship or single-member limited liability company (LLC). You must file a Schedule C if the primary purpose of your business is to generate revenue or profit and if you’re involved regularly…
Best Small Business Tax Software for 2022
Small business owners can prepare their own tax returns for a fraction of the cost of tax professionals, as most certified public accountants (CPAs) charge a minimum of $500 for a business return. Below, we’ve identified the best small business tax software based on price, features, and ease of use. : Best overall small business…
TaxSlayer Review: Features & Pricing in 2022
TaxSlayer is an online tax preparation software that allows you to file state and federal tax returns anytime and anywhere. It lets you file simple returns for free and handle complex self-employed tax situations at a low cost. Its features include free phone and email support, guaranteed maximum refund, IRS audit assistance, and a mobile…
FreeTaxUSA Review: Features & Pricing in 2022
FreeTaxUSA is an online tax preparation software that lets you file federal returns directly to the IRS electronically for free and process state returns at a low cost. Its features include tax return backup, unlimited amended returns, accuracy guarantee, a refund maximizer, priority support with live chat, and more. You can file federal taxes for…